Problem 2.4A (Static) Preparing an income statement, a statement of owner's equity, and a balance sheet. LO 2-4, 2-5 Exp 0 + 980 980 + - 980 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton Assets Liab. Owner's Equity Accls. Accts. T.Cotton Cash + Rec. + Supp. + Equip. = Pay + Capital + Rev. Balances, May 1 15,000 + 3.000 + 5,800 + 33,800 - 7.000 + 50,600 + 0 Paid for utilities -980 New balances 14,020 3,000 + 5,800 33,800 7.000 - 50,600 - 0 Sold services for cash +4,980 +4,980 New balances 19,000 3,000 + 5,800 + 33,800 - 7,000 + 50,600 4.980 Paid a creditor -2,100 -2,100 New balances 16,900 3,000 + 5,800 + 33,800 - 4,900 + 50,600 4,980 Sold services on credit +2.900 +2,900 New balances 16.000 5,900 +5,800 + 33,800 4.800 + 50,600 7880 Paid salaries - 8,900 New balances 8,000 5,900 + 5,800 + 33,800 - 4,900 + 50,600 + 7,600 Paid telephone bill - 314 New balances 7,686 + 5.900 +5,800 +33,800 4,900 + 50,600 7,880 Withdrew cash for personal expenses - 3,000 3,000 New balances 4,686 5,900 33,800 4,900 47,600 7,880 + + 980 . 90 +8,900 9,880 +314 10,104 + + 5,800 10,194 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for May 31, 20X1. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner's equity? Complete this question by entering your answers in the tabs below. Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare a balance sheet for May 31, 20X1. Assets COTTON CLEANING SERVICE Balance Sheet May 31, 20X1 Liabilities S 4.686 Accounts payable 5,900 Fees income 5,800 Owner's Equity 33,800 Taylor Cotton Capital Cash $ X 4,900 7,000 Accounts receivable Supplies Equipment $ 45.286 Total Assets $ 50,186 Total Liabilities and Owner's Equity $ 57,186