P1-3A On May 1, A. J. Pierzynski started AJ Flying School, a company that provides flying Prepare income statement, lessons, by investing $40,000 cash in the business. Following are the assets and liabilities of the owner's equity statement, and company on May 31, 2012, and the revenues and expenses for the month of May. balance sheet. Cash $ 3,400 Notes Payable $30,000 (50 8) Accounts Receivable 4,900 Rent Expense 1,200 Equipment 64,000 Maintenance and Repairs Expense 400 Service Revenue 8,100 Gasoline Expense 2,500 Advertising Expense 600 Insurance Expense 400 Accounts Payable 800 40 1 Accounting in Action A. J. Pierzynski made no additional investment in May, but he withdrew $1,500 in cash for per- sonal use. Instructions (a) Net income $3,000 (a) Prepare an income statement and owner's equity statement for the month of May and a bal- Owner's equity $41,500 Total assets $72,300 ance sheet at May 31. (b) Net income $2,400 (b) Prepare an income statement and owner's equity statement for May assuming the following Owner's equity $40,900 data are not included above: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid