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 payable $ Income tax 38,500 expense 15,300 Insurance expense 126,000 Interest expense $ 11,230 7,500 Accounts receivable 4,500 Accumulated depreciation- equipment Cash Cash dividends-common Cash dividends-preferred Common shares Cost of goods sold Depreciation expense 70,220 75,000 150,000 20,600 Inventory 50,000 Notes payable 7,500 Preferred shares 50,000 Rent expense 277,475 Retained earnings 42.000 Salaries expense 24,500 73,000 67,800 Show all 38,500 Accounts receivable expense 11,230 15,300 Insurance 7,500 expense Accumulated depreciation- 126,000 Interest expense equipment 4,500 Cash 20,600 Inventory 70,220 Cash dividends--common 50,000 Notes payable 75,000 Cash dividends-preferred 7,500 Preferred shares 150,000 Common shares 50,000 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. Rent expense