On May 1, Nimbus Flying School, a company that provides flying lessons, was started by using common stock in exchange for cash of $45,000. Following are the assets and liabilities of the company on May 31, 2019, and the revenues and expenses for the month of May.

No additional investments were made in May, but the company paid dividends of $500 during the month.
Instructions
(a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31.
(b) Prepare an income statement and a retained earnings statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid.

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$28,000 900 Cash Accounts Receivable int ServiRvem Advertising Expense Accounts Payable $ 4,650 7,400 64,000 6,800 500 1,400 Notes Payable Rent Expense Maintenance and Repairs xpn Gasoline Expense Utilities Expense 350 2,500 400