Prepare income statement, retained earnings statement, and balance sheet. P1.3 (LO5), AP On May 1, Nimbus Flying School, a company that provides flying lessons, was started by using common stock in exchange for cash of \$45,0oo. Following are the assets and liabilities of the company on May 31,2022 , and the revenues and expenses for the month of May. No additional investments were made in May, but the company paid dividends of $500 during the month. Instructions a. Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31. a. Net income $2,150 Total assets $76,050 b. Prepare an income statement and a retained earnings statement for May assuming the following data are not included above: (1) \$9oo worth of services were performed and billed but not collected at May 31, and (2) \$1,500 of gasoline expense was incurred but not paid. b. Net income $1,550