A Lisa Lane operates and is the major stockholder of an interior design studio called Lane Designers Inc. The following Balance Sheet shows the financial position of the business on April 30,2010: Lane Designers, Inc. Balance Sheet as of 4/30/2010 LIABILITIES ASSETS Cash Accounts Receivable S1,720 Accounts Payable 2.240 $5,400 Supplies 0 O EQUITY 241001 Common Stock $28,060 Total Equity Land 10,000 Retained Earnings Total Liabilities and Equity Total Assets $28,060 During May 2010, the business completed these transactions: a Lane received $42,000 as a gift and deposited the cash in the business bank account. The business issued common stock to Lane. b. Paid $1,400 on accounts payable c. Performed services for a client and received cash of $4,100. d Collected cash from a customer on account, $750. e. Purchased supplies on account, $720 f. Consulted on the interior design of a major office building and billed the client for services rendered, $5,000. g. Recorded the following expenses for the month: (1) paid office rent $1,200 (2) paid advertising $660. h. Declared and paid a cash dividend of $2,400. Required Set up the following T-accounts and post beginning balances based on the Balance Sheet above: Cash, Accounts Receivable, Supplies, Land, Accounts Payable, Common Stock, Retained Earnings, Dividends, Service Revenue Advertising Expense, and Rent Expense. 1. Recorded each transaction in the journal, using the account titles given. Key each transaction by letter. Explanations are not required. 2. Post the transactions to the T-accounts, using transaction date as posting references 3. Prepare the trial balance of Lane Designs, Inc., at May 31, 2010. 4. Prepare the income statement of Lane Designers, Inc, for the month/ended May 31, 2010. Prepare the st of retained earnings of Lane Designers, Inc., for the month ended May 31, 2010. 5. Prepare the balance sheet of Lane Designers, Inc.,at May 31, 2010 6 Lane asks you how much in total resources the business has to work with, how m uch it owes, and whether May was profitable (and by how much)