P13.10B (LO 3, 5) AP 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 $ Income payable 38,500 tax 11,230 expense Accounts 15,300 Insurance 7,500 receivable expense Accumulated 126,000 Interest 4,500 depreciation expense equipment Cash 20,600 Inventory 70,220 Cash 50,000 Notes 75,000 dividends- payable common Cash dividends- 7,500 Preferred 150,000 shares preferred Common 50,000 Rent 24,500 shares expense Cost of goods 277,475 Retained 73,000 sold earnings