Figure 1. Melody's Piano School operations for the month of May, 2010 are summarized in the following three transactions (use figure 1 to answer questions 9 and 10): Provided $500 instruction to students. This amount will be received in July, Received $700 cash from students-of which $400 is for lessons provided in May, and $300 is for lessons provided in April. Paid April's piano rental bill of $100. Received May's bill of $150 but did not pay. Refer to figure 1. Under accrual basis accounting, which of the following statement is TRUE about the activities for Melody's Piano School for May, 2010? The $500 Instruction to students rendered this year and will be paid next month will be reported on the Balance Sheet as Accounts payable. The $700 cash received from students for lessons provided should all be recorded as revenue on the Income Statement this month since all the $700 cash is received. The $100 payment for the rental bill should be recorded as expense since cash is paid in May. The $150 rental bill should be recorded as expense in May