Kelly Cassidy established Firefly Computer Services on May 1, 2008. The effect of each transaction and the balances after each transaction for May are shown at the top of the following.

Instructions
1. Prepare an income statement for the month ended May 31, 2008.
2. Prepare a statement of owner€™s equity for the month ended May 31, 2008.
3. Prepare a balance sheet as of May 31, 2008.
4. (Optional). Prepare a statement of cash flows for the month ending May 31,2008.

Assets Liabilities + Owner's Equity Kelly Kelly Accounts Cassidy, Cassidy, Salaries Rent Cash +Recevable SuppliesPayable Capital DrawingEarned Expnse Expense Expense Expense Expense Accounts Auto Supplies Misc +25,000 3,600 3,60025,000 3,600 25,000 3,600 25,000 3,60030 25,000 a. +25,000 3,600 3,600 Bal. 25,000 c. +22500 Bal. 47,500 3,600 22,500 9,000 9,000 9,000 Bal. 38,500 e.1,250 Bal 37,250 3,600 1,250 +18,750 +18,750 Bal.-37250-18750 3600 2350 25000 9 5,750 Bal. 1,500 8750 600 25,000 h.10,000 Bal. 21,500 18,750 3600 3S 25,000 -3,875 -90 3875 1,875 41,2 10,000 -1,625 Bal. 21,500 18,750 1,9 2,350 25,000 41,250-10,000-9,000-3 -1,6 -1,87 5,000 5,000 Bal. 6,500 8750 1,975 2350 25,000 1,250 0,000,0003,751,625 ,875