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 Accts. Rec. + Supp. + Eollip. 3,000 + 5,800 + 33,800 Liab. + Owner's Equity Accts. T. Cotton, Pay. + Capital + Rev. = 7,000 50,600 + Exp. + + Cash 15,000 - 980 14,020 @ + 989 980 + 3,000 +5,800 + 33,800 7,000 + 50,600 + 4.980 19,000 4,989 4,980 + 3,000 + 5,800 + 33,800 7,000 + + 50,600 980 2,100 16,900 2,100 4,900 3,000 + + 5,800 + 33,800 + 4,980 50, 600 980 Balances, May 1 Paid 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 2,900 5,900 2,900 7,880 + 16,900 +5,800 + 33,800 - 4,900 50,600 980 5,900 +5,800 + 33,800 4,900 + 50,600+ 7,880 8,900 8,000 - 314 7,686 8,900 9,880 + 314 - 10.194 5,900 +5,800 + 33,800 4,900 + 7,880 50,600 - 3,000 47.600 3,000 4,686 5,900 +5,800 + 33 800 4,900 7,880 10,194 Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare an income statement for the month of May 31, 20X1. (Lis COTTON CLEANING SERVICE Income Statement Month Ended May 31, 20X1 Revenue Expenses Total expenses 0 Net loss Complete this question by entering your answers in the tabs below. Income Statement Stmt of Owners Eqty Balance Sheet Analyze Prepare a statement of owner's equity for the month of May 31, 20X1. COTTON CLEANING SERVICE Statement of Owner's Equity Month Ended May 31, 20X1 0 $ 0 Required: Analyze each transaction carefully. Prepare an incom& statement and a statement of owner's equity for the mon sheet for May 31, 20X1. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner's equity? Complete this question by entering your answers in the tabs below. Income Stmt of Balance Sheet Statement Owners Eqty Analyze Which amount was transferred from the statement of owner's equity? Owner's equity