Little Folks Baseball, Inc., was formed by a group of parents to meet a need for a place for kids Prepare income to play baseball. At the beginning of its second year of operations, its balance sheet appeared statement, as follows:

The summarized transactions for May 2012 are as follows:

a. Issued additional capital stock for cash, $200,000.
Collected $80,000 on accounts receivable.
Paid $64,000 on accounts payable.
Received membership fees from parents (nonrefundable): in cash, $260,000; and on account, $120,000.

e. Incurred operating expenses: for cash, $60,000; and on account, $160,000.

f. Paid dividends of $16,000.
g, Purchased more land for cash, $96,000.
h. Placed an order for new equipment expected to cost $120,000.

a. Prepare a summary of transactions (see Part A of Illustration 1.3) using column headings as given in the balance sheet. Determine balances after each transaction.

b. Prepare an income statement for May 2012.

e. Prepare a statement of retained earnings for May 2012.

d. Prepare a balance sheet as of May 31, 2012.

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Cash Accounts Receivable Land Total assets LITTLE FOLKS BASEBALL, INC. Balance Sheet April 30, 2012 Assets Liabilities: Liabilities and Stockholders' Equity Accounts payable Stockholders' Equity: Capital stock Retained earnings Total liabilities and stockholders' equity $ 56,000 80,000 600,000 $ 736,000 $ 64,000 $ 400,000 272,000 672,000 $ 736,000