Extra adjustment data appears on May 31, 2020 consist of: * Drawing hall sketches etc. on hand 10,000 SAR. * Depreciation is 2,500 SAR

Required: 1. Journalize the transaction. 2. Prepare the 3 financial statements (Income Statement, retained earnings statement, Statement of Financial position)

Falcon Real-estate corporation opened FALCON Interior, a design business. The business will have a monthly accounting cycle. On May 1, 2020, During May, the business completed the following transactions. 1. May 1. Began business with 50,000 SAR in cash and 55,000 SAR in design equipment in exchange for ordinary shares in FALCON Interior. 2. May 3 FALCON Interior paid 24,000 SAR for a one-year lease agreement that will expire Apr 30, 2021 3. May 4. FALCON Interior rented a showroom that cost 180,000 SAR annually to start the business. The full payment due in Apr 30, 2021. 4. May 5, FALCON Interior purchased equipment that that cost 30,000 SAR. 15,000 SAR was paid in cash and the remaining on account. 5. May 6, FALCON interior purchased some drawing hall sketches from Narolak signing 3 months note payable in the amount for SAR 15,000. The note required FALCON Interior to pay interest at an annual rate of 15%. 6. May 8, FALCON Interior discussed to organize a party for the manager birthday; they estimate it will cost 25,000 SAR. 7. May 12, FALCON Interior haired 4 delivery boys, starting Monday, May 4, 2020. Each employee agreement set the salary to be 1200 SAR for a six-day workweek (Sunday off), and the salaries will be paid on the 3rd day of every month. First payment is on June 3, 2020 8. May 13, FALCON Interior received 5,000 SAR for provided services. 9. May 14, FALCON Interior pays 15,000 SAR in advance for advertisement to Daleel advertising 10. May 15, Daleel Advertising announced the advertisement. 11. May 18, FALCON Interior received 50,000 SAR in cash from a customer as an advance for an office model designing service to be provided on May 23, 2020. 12. May 23, FALCON Interior provided the designing services for the office model required by client 13. May 24 FALCON Interior provided some services for 20,000 SAR to customers, and they agreed to pay the amount due later. 14. May 25 FALCON Interior received 10,000 SAR from customer who had been billed for services on May 24 15. May 30. FALCON Interior paid 1,000 SAR Miscellaneous expenses. 16. May 31. FALCON Interior pays a dividend of 1,000 SAR in cash to Falcon Real Estate, the owner