Carlotta's Cakes Inc. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at May 31, 2021, its fiscal year end. All accounts have normal balances. Prepare financial statements. Accounts payable $ 38,500 Income tax expense $ 11,230 Accounts receivable 15,300 Insurance expense 7,500 Accumulated depreciationequipment 126,000 Interest expense 4,500 Cash 20,600 Inventory 70,220 Cash dividendscommon 50,000 Notes payable 75,000 Cash dividendspreferred 7,500 Preferred shares 150,000 Common shares 50,000 Rent expense 24,500 Cost of goods sold 277,475 Retained earnings 73,000 Depreciation expense 42,000 Salaries expense 67,800 Dividends payable 7,500 Sales 504,500 Equipment 420,000 Supplies expense 5,875 The note payable is due in 2023. There are 10,000 common shares issued and 5,000 preferred shares issued as at May 31, 2021. Instructions Prepare an income statement, statement of retained earnings, and balance sheet.