Aero Flying School was started on May 1 with an investment of \(\$ 45,000\) cash. Following are the assets and liabilities of the company on May 31, 1998, and the revenues and expenses for the month of May:

No additional common stock was issued in May, but a dividend of \(\$ 1,700\) in cash was paid.
\section*{Instructions}
Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 1998.

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Cash Accounts receivable $ 7,800 Notes payable $30,000 7,200 Rent expense 1,200 Equipment 64,000 Repair expense 400 Service revenue 9,600 Fuel expense 2,200 Advertising expense 500 Insurance expense 400 Accounts payable 800