Prepare an income statement and statement of retained earnings in good form with a proper heading.

Prepare a balance sheet in good form with a proper heading.

Prepare a post-closing trial balance on May 31, 2018.

business are shown b 4 KC Inc. egan operations on May 1, 2018. The transactions for the first month in eloW The following transaction occurred in May 7 (1) On May 1 our company issued shares common stock exchange for cash. The cash received tota 250,000 Par value for common stock Shares of common stock issued 100,000 10 (2) On May 2, we purchased equipment for cash. The equipment cost Is 50,000 The estimated useful life of the property is five years. 11 The estimated residual value of the property is: Is 5,000 KC Inc. uses the Double-declining balance method for depreciation of equipment. 13 14 (3) On May 3 we purchased a building. We financing the purchase by signing a fifteen year note 160,000 The estimated useful life of the building is twenty five years 15 The estimated residual value of the property is: 16,000 16 KC Inc. uses the Double-declining balance method for depreciation of the building. The annual interest rate on the note payable is 18 5.0% 19 (4) On May 4, we received cash from a customer (ABD inc for work to be completed in May and Jun 25,000 20 (5) On May 9 we purchased office supplies on account for: S 2,200 21 (6) On May 15 we provided service for a client (XYZ inc.) on account: 10,000 22 (7) On May 20, we paid salaries for our staff which totale 7,500 1,500 23 (8) On May 31, we paid for a twelve month insurance policy in advance: 24 The following information is available on May 31 25 26 Revenue earned from the May 4 transaction totaled: 15,000 27 Office supplies on hand totaled: S 1,200 28 Round all calculations to two decimal places 29