Transaction Analysis and Financial Statements Just Rolling Along Inc. was organized on May 1 by two college students who recognized an opportunity to make money while spending their days at a beach along Lake Michigan. The two entrepreneurs plan to rent bicycles and in-line skates to weekend visitors to the lakefront. The following transactions occurred during the first month of operations: May 1: Received contribution of $9,000 from each of the two principal owners of the new business in exchange for shares of stock. May 1: Purchased ten bicycles for $300 each on an open account. The company has 30 days to pay for the bicycles. May 5: Registered as a vendor with the city and paid the $15 monthly fee. May 9: Purchased 20 pairs of in-line skates at $125 per pair, 20 helmets at $50 each, and 20 sets of protective gear (knee and elbow pads and wrist guards) at $45 per set for cash. May 10: Purchased $100 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. May 15: Paid $125 bill from local radio station for advertising for the last two weeks of May. May 17: Customers rented in-line skates and bicycles for cash of $1,800. May 24: Billed the local park district $1,200 for in-line skating lessons provided to neighborhood children. The park district is to pay one-half of the bill within five working days and the rest within 30 days. May 29: Received 50% of the amount billed to the park district. May 30: Customers rented in-line skates and bicycles for cash of $3,000. May 30: Paid wages of $160 to a friend who helped over the weekend. May 31: Paid the balance due on the bicycles. Required: 1. Complete the table below to summarize the preceding transactions as they affect the accounting equation. Enter transactions in the same order as presented above. If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases. Just Rolling Along Inc. Transactions for the Month of May Assets = Liabilities + Stockholders' Equity Date Cash Accounts Receivable Equipment Supplies Accounts Payable Capital Stock Retained Earnings May 1 $ $ $ $ $ $ $ May 1 Balance $ $ $ $ $ $ $ May 5 Balance $ $ $ $ $ $ $ May 9 Balance $ $ $ $ $ $ $ May 10 Balance $ $ $ $ $ $ $ May 15 Balance $ $ $ $ $ $ $ May 17 Balance $ $ $ $ $ $ $ May 24 Balance $ $ $ $ $ $ $ May 29 Balance $ $ $ $ $ $ $ May 30 Balance $ $ $ $ $ $ $ May 30 Balance $ $ $ $ $ $ $ May 31 Balance $ $ $ $ $ $ $ Total Assets: $ Total Liabilities and Stockholders' Equity: $ 2. Prepare an income statement for the month of May. Just Rolling Along Inc. Income Statement For the Month of May Revenues: $ Total Revenues $ Expenses: $ Total Expenses $ 3. Prepare a classified balance sheet at May 31. Just Rolling Along Inc. Balance Sheet May 31 Assets Current assets: $ Total current assets $ Property, plant, and equipment: Total assets $ Liabilities and Stockholders' Equity Current liabilities: $ $ Total stockholders' equity Total liabilities and stockholders' equity $ Which of the following statement is incorrect?