Using the trial balance prepared for HR Solutions in Part 4 of Problem 2-7A, prepare an income statement and statement of changes in equity for the month ended May 31, 2017, and a balance sheet at May 31, 2017.

Problem 2.7A

Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2017:
May    

1. Invested $75,000 in cash and office equipment that had a fair value of $48,000 in the business. 

1. Prepaid $14,400 cash for three months’ rent for an office. 

2. Made credit purchases of office equipment for $24,000 and office supplies for $4,800. 

6. Completed a report on hiring solutions for a client and collected $8,000 cash.
9. Completed a $16,000 project implementing a training program for a client, who will pay within 30 days. 

10. Paid half of the account payable created on May 2. 

19. Paid $7,500 cash for the annual premium on an insurance policy. 

22. Received $12,800 as partial payment for the work completed on May 9.
25. Developed a performance review process for another client for $5,280 on credit. 

25. Paid wages for May totaling $34,000. 

31. Withdrew $5,000 cash from the business to take a trip to Paris in June. 

31. Purchased $1,600 of additional office supplies on credit.
31. Paid $1,400 for the month’s utility bill.