at reoruary 28, 2019. for Taylor Preparing an income statement, a statement of owner's equity, and a balance sheet. Problem 2.4A Objectives 2-4, 2-5 The following equation shows the transactions of Cotton Cleaning Service during May. The busi- ness is owned by Taylor Cotton Owner's Equity Assets Liab. + Accts. Accts. Pay. T. Cotton, + Capital Cash + Rev. Exp. + Rec. + Supp. + Equip. = 7.000 + 50,600 + 3,000 + 5,800 + 33,800 = 0 0 +980 980 3.000 + 5.800 + 33,800 = 7,000 + 50,600 + 0 +4,980 4.980 3.000 + 5,800 + 33,800 50,600 + 980 7,000+ -2.100 4,900 + 50,600 + 980 Balances, May 1 15,000 + Pald for utilities -980 New balances 14,020 + Sold services for cash +4.980 New balances 19,000 + Paid a creditor -2,100 New balances 16,900 + Sold services on credit New balances 16,900 + Pald salaries -8,900 New balances 8,000 + Paid telephone bill -314 New balances 7,686 + Withdrew cash for personal expenses -3,000 New balances 4.686 + 3.000 + 5.800 + 33,800 +2.900 5,900 + 5.800 + 33,800 = 4.980 +2.900 7,880 4.900 + 50,600 + 5,900 + 5,800 + 33,800 = 4,900 + 50,600 + 7,880 980 +8,900 9,880 +314 10,194 5,900 + 5,800 + 33,800 = 4,900 + 50,600 + 7,880 5,900 + 5,800 + 33,800 = 4.900 + -3,000 47,600 + 7,880 10.194 INSTRUCTIONS Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for May 31, 2019. List the expenses in detail on the income statement. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner's equity