The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

INSTRUCTIONS
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, 2016. List the expenses in detail on the income statement.
Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner’sequity?

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= Liab. + Accts· Cash+ Rec. + Supp. +Equip. = Pay. + Capital + Rev. - Exp Assets Owner's Equity Accts. T. Cotton, Balances, May 1 15,000 3,0005,800 Paid for utilities New balances Sold services for cash 4,980 New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Paid telephone bill-314 Mew balances Withdrew cash for personal expenses3,000 New balances +33,800 700050,6000 -980 14,020 3,0005,800 +33,800 7,000 50,600+ +980 980 +4,980 - 19,000 +3,000 5,800 +33,800 7,000 50,6004,980 980 -2,100 2,100 16,900 3,0005,800 +33,800-4,900 +50,600 4980 980 +2,900 +2,900 16,900 5,9005,800 +33,8004,900 50,600 7,880 8,900 8,000 5,9005800 +33,800-4,900 +50,600 7,880 980 +8,900 9,880 +314 10,194 7,686 5,9005800 +33,800 4,900 +50,6007,880 - 3,000 4,686 + 5,9005800 +33,8004,900+47,6007, 8800,194