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The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets Owner's Equity Balances, May

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The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets Owner's Equity Balances, May 1 Paid for utilities New balances Cash 15,000 + 980 Accts. Rec. Supp. Equip. - Pay 3,000 +5,800 +33,800 Liab. + Accts. T.Cotton, Capital + Rev. 7,000 + 50,600 + 14,020 + 3,000 +5,800 +33,800 7,000+ 50,600 Exp.. 0 +980 980 Sold services for cash + 4,980 4,980 New balances 19,000 + 3,000 5,800 33,800 7,000 + 50,600 + 4,980 980 Paid a creditor 2,100 New balances 16,900 + 3,000 +5,800 +33,800 2,100 4,900 + 50,600 4,980 980 Sold services on credit New balances 16,900 2,900 5,900 +5,800 33,800 2,900 4,900 + 50,600 + 7,880 980 Paid salaries 8,900. 8,900 New balances Paid telephone bill 8,000 + 5,900 +5,800 +33,800 -314 50,600 New balances 7,686 5,900 +5,800 +33,800- Withdrew cash for personal expenses 3,000 New balances 4,686 5,900 +5,800 +33,800 4,900 4,900 + 4,900 + 50,600 + 7,880 - 3,000 47,600 . 7,880 7,880 9,880 314 10,194 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, 201. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner's equity? Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare an income statement for the month of May 31, 20X1. COTTON CLEANING SERVICE Income Statement Month Ended May 31, 20X1 Revenue Expenses Total expenses < Income Statement 0 Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare a statement of owner's equity for the month of May 31, 20X1. COTTON CLEANING SERVICE Statement of Owner's Equity Month Ended May 31, 20X1 69 0 0 Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare a balance sheet for May 31, 20X1. COTTON CLEANING SERVICE Balance Sheet May 31, 20X1 Assets Liabilities Owner's Equity Total Assets $ 0 Total Liabilities and Owner's Equity $ Income Statement Stmt of Owners Eqty Balance Sheet Analyze Which amount was transferred from the statement of owner's equity? Owner's equity

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