Problem 2.4A (Algo) Preparing an income statement, a statement of owner's equity, and a balance sheet. LO 2-4, 2-5 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets = Liab. + Owners Equity Cash + Accts. Rec. + Supp. + Equip. = Accts. Pay. + T.Cotton, Capital + Rev. Exp. Balances, May 1 15,900 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 0 0 Paid for utilities 790 + 790 New balances 15,110 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 0 790 Sold services for cash + 4,790 + 4,790 New balances 19,900 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 4,790 790 Paid a creditor 2,550 2,550 New balances 17,350 + 3,900 + 6,700 + 34,700 = 5,350 + 53,300 + 4,790 790 Sold services on credit + 3,350 + 3,350 New balances 17,350 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 790 Paid salaries 9,350 + 9,350 New balances 8,000 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 10,140 Paid telephone bill 323 + 323 New balances 7,677 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 10,463 Withdrew cash for personal expenses 1,100 1,100 New balances 6,577 + 7,250 + 6,700 + 34,700 = 5,350 + 52,200 + 8,140 10,463 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owners equity for the month. Prepare a balance sheet for May 31, 20X1. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owners equity? Problem 2.4A (Algo) Preparing an income statement, a statement of owner's equity, and a balance sheet. LO 2-4, 2-5 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets = Liab. + Owners Equity Cash + Accts. Rec. + Supp. + Equip. = Accts. Pay. + T.Cotton, Capital + Rev. Exp. Balances, May 1 15,900 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 0 0 Paid for utilities 790 + 790 New balances 15,110 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 0 790 Sold services for cash + 4,790 + 4,790 New balances 19,900 + 3,900 + 6,700 + 34,700 = 7,900 + 53,300 + 4,790 790 Paid a creditor 2,550 2,550 New balances 17,350 + 3,900 + 6,700 + 34,700 = 5,350 + 53,300 + 4,790 790 Sold services on credit + 3,350 + 3,350 New balances 17,350 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 790 Paid salaries 9,350 + 9,350 New balances 8,000 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 10,140 Paid telephone bill 323 + 323 New balances 7,677 + 7,250 + 6,700 + 34,700 = 5,350 + 53,300 + 8,140 10,463 Withdrew cash for personal expenses 1,100 1,100 New balances 6,577 + 7,250 + 6,700 + 34,700 = 5,350 + 52,200 + 8,140 10,463 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owners equity for the month. Prepare a balance sheet for May 31, 20X1. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owners equity?

Income statement, balance sheet, statement of owner's equity, and analysis.