Problem 2.4A (Static) 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 Acets Rec + Supp. + Equip 3,000 + 5,800 + 33,800 Liab Accts. Pay 7,000 Owner's Equity T.Cotton, Capital + Rev. + 50,600 0 + Exp. 0 980 980 + Cash 15,000 -980 14,020 +4,980 19,000 -2,100 16.900 3,000 +5,800 + 33,800 7,000 + 50,600 0 +4,980 4.980 + 3,000 5,800 + 33,800 - + 50,600 980 7,000 -2,100 4,900 + + 33,800 = 980 Balances, May 1 Pald for utilities New balances Sold services for cash New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Paid telephone bill New balances Withdrew cash for personal expenses New balances 3,000 + 5,800 + 2.900 5,900 + 5,800 + 50,600+ 4.980 +2,900 + 50.000 7,880 + + 33,600 - 4,900 + 5,900 + 5,800 + 33,800 - 4,900 50,600 + 7,880 16,900 - 8,900 8,000 - 314 7,686 - 3,000 +8,900 9,880 - 314 - 10,194 + 5.900 5,800 33,800 4,900 + 50,600 + 7,880 3,000 + 47,600 4,686 5,900 + 5.800 +33,800 4,900 7,880 10,104 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner's 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 owner's equity? Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare an income statement for the month of May 31, 20X1. (List the expenses in detail on the income stat COTTON CLEANING SERVICE Income Statement Month Ended May 31, 20X1 Revenue 7,880 980 Expenses Utilities expense Salaries expense Telephone expense 8,900 314 Total expenses 10,194 2,314 $ Stmt of Owners Eqty>