Just Rolling Along Inc. was organized on May 1 by two college students who recognized an opportunity to make money while spending their days at a beach along Lake Michigan. The two entrepreneurs plan to rent bicycles and in-line skates to weekend visitors to the lakefront. The following transactions occurred during the first month of operations:

Required
1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with the date.
2. Prepare an income statement for the month of May.
3. Prepare a classified balance sheet at May 31.
4. Why do you think the two college students decided to incorporate their business rather than operate it as a partnership?