On May 1, Yoon Flying School, a company that provides flying lessons, was started with an investment of W 45,000,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2011, and the revenues and expenses for the month of May (in thousands).

No additional investments were made in May, but the company paid dividends of W 1,500,000 during the month.

Instructions
(a) Prepare an income statement and a retained earnings statement for the month of May and a statement of financial position at May 31 (show numbers in thousands).
(b) Prepare and income statement and a retained earnings statement for May assuming the following data are not included above: (1) W900,000 of revenue was earned and billed but not collected at May 31, and (2) W1,500,000 of fuel expense was incurred but notpaid.

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Cash Accounts Receivable Equipment Lesson Revenue Advertising Expense 5.600 7.200 64.000 7.500 500 Notes Payable Rent Expense Repair Expense Fuel Expense Insurance Expense Accounts Payable W30.000 1.200 400 2.500 400 800