Problem 1-03A a1-a3, b1-b2 (Video)

On May 1, Pina Colada Corp., a company that provides flying lessons, was started by using common stock in exchange for cash of $45,200. Following are the assets and liabilities of the company on May 31, 2020, and the revenues and expenses for the month of May.

Cash		$ 4,850		Notes Payable		$28,000
Accounts Receivable		7,600		Rent Expense		1,050
Equipment		64,200		Maintenance and Repairs Expense		500
Service Revenue		7,000		Gasoline Expense		2,350
Advertising Expense		700		Utilities Expense		250
Accounts Payable		1,600

No additional investments were made in May, but the company paid dividends of $300 during the month.

Net Income: $2,150

A) Prepare a retained earnings statement for the month of May. (List items that increase retained earnings first.)

B) Prepare a balance sheet at May 31. (List Assets in order of liquidity.)

C) Prepare an income statement for May assuming the following data are not included above:

(1) $1,000 worth of services were performed and billed but not collected on May 31, and

2) $1,150 of gasoline expense was incurred but not paid.

D) Prepare a retained earnings statement for May assuming the following data are not included above: (1) $1,000 worth of services were performed and billed but not collected at May 31, and (2) $1,150 of gasoline expense was incurred but not paid. (List items that increase retained earnings first.)