Financial information related to Lynch Interiors for May and June of the current year is as follows:

a. Prepare balance sheets for Lynch Interiors as of May 31 and as of June 30 of the current year.

b. Determine the amount of net income for June, assuming no additional capital stock was issued and no dividends were paid during the month.

c. Determine the amount of net income for June, assuming no additional capital stock was issued but dividends of $5,000 were paid.

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May 31, 20- June 30, 20- Notes payable Land $ 5,000 $10,000 7,500 9,000 Capital stock 5,000 5,000 Retained earnings ? ? Cash 15,000 25,500 Supplies 1,000 750-