(1) May 1 Owner have invested $50,000 in the company. (2) May 3 Borrowed $20,000 from a bank. (3) May 6 Purchased $1,000 equipment on credit. (4) May 8 Purchased $10,000 merchandise in cash. (5) May 15 Sold $7500 of merchandise at the price of $11,000. Customer paid $8,000 in cash at the time of sale. (6) May 25 Paid $2,500 salaries. (7) May 26 Paid $1,500 rent. (8) May 27 Paid $100 utilities Required: Prepare income statement and balance sheet. (5 points)