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Analyze transactions with the accounting equation and prepare the financial statements P2-40B Doug Hanna operates and is the major shareholder of an interior design studio called DH Designers, Inc. The following amounts summarize the financial position of the business on April 30, 2017: Assets Liabilities Shareholders' Equity Cash Accounts Supplies Land + Receivable Accounts Payable Common Shares Retained Earnings 2,200 24,100 Bal. 1,700 5,400 10,000 12,600 During May 2017, the business completed these transactions: a. Hanna received $30,000 as a gift and deposited the cash in the business bank account. The business issued common shares to Hanna. b. Paid $1,000 on accounts payable. c. Performed services for a client and received cash of $5,100. d. Collected cash from a customer on account, $700. e. Purchased supplies on account, $800. f. Consulted on the interior design of a major office building and billed the client for services rendered, $15.000. b. Paid $1,000 on accounts payable. c. Performed services for a client and received cash of $5,100. d. Collected cash from a customer on account, $700. e. Purchased supplies on account, $800. f. Consulted on the interior design of a major office building and billed the client for services rendered, $15,000. g. Received cash of $1,700 and issued common shares to a shareholder. h. Recorded the following expenses for the month: paid office rent, $2,100; paid advertising, $1,600. i. Declared and paid a cash dividend of $2,000. Requirements In order to guide Doug Hanna: 1. Analyze the effects of the preceding transactions on the accounting equation of DH Designers, Inc. Adapt the format of Exhibit 2-1, Panel B. 2. Prepare the income statement of DH Designers, Inc. for the month ended May 31, 2017. List expenses in decreasing order by amount. 3. Prepare the statement of retained earnings of DH Designers, Inc. for the month ended May 31, 2017. 4. Prepare the balance sheet of DH Designers, Inc. at May 31, 2017