Travis McAllister operates a surveying company. For the first few months of the company's life (through April), the accounting records were maintained by an outside bookkeeping service. According to those records, McAllister's equity balance was $75,000 as of April 30. To save on expenses, McAllister decided to keep the records himself. He managed to record May's transactions properly, but was a bit rusty when the time came to prepare the financial statements. His first versions of the balance sheet and income statement follow. McAllister is bothered that the company apparently operated at a loss during the month, even though he was very busy.

Required
Using the information contained in the original financial statements, prepare revised statements, including a statement of changes in equity, for the month of May.
Analysis Component: The owner, Travis McAllister, made a withdrawal during May. Withdrawals cause equity to decrease. Why would the owner intentionally cause equity to decrease by making a withdrawal?

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McAllister Surveying Income Statement For Month Ended May 31, 2014 Revenue: Investments by owner Unearned surveying fees $ 3,000 6,000 $ 9,000 … Operating expenses: $3,100 600 Rent expense . Telephone expense. Surveying equipment. Advertising expense. Utilities expense.. Insurance expense... Withdrawals by owner6,000 3,200 300 900 Total operating expenses.. Net income (loss). 19,500 S(10,500) McAllister Surveying Balance Sheet May 31, 2014 Assets Liabilities Cash3,900 Accounts payable Accounts receivable Prepaid insurance Prepaid ren. Office supplies Buildings... 2,700 Surveying fees earned. 1,800 Short-term notes payable... 4,200 Total liabilities 2,400 18,000 48,000 300 81,000 Equity 36,000 Travis McAllister, capital 64,500 3,000 Salaries expense Total asset... $132,900 Total liabilities and equity.$132,900