chapter 1

question 5

On May 1, Sheffield Corp, a company that provides flying lessons, was started by using common stock in exchange for cash of $45,350. Following are the assets and liabilities of the company on May 31, 2022, and the revenues and expenses for the month of May. No additional investments were made in May, but the company paid dividends of $150 during the month. Prepare a retained earnings statement for the month of May. (List items that increase retained earnings first.)