The following amounts were taken from the accounting records of May 31, 20Y7. Hargrove Services began its operations on June 1, of Hargrove Services, Inc., as 1, 20Y6.

Capital stock......................................................$30,000

Cash..................................................................62.000

Dividends...........................................................13,000

Fees earned........................................................300.000

Interest expense......................................................2,000

Land.................................................................98.000

Miscellaneous expense.............................................8.000

Notes payable......................................................30,000

Rent expense.......................................................28.000

Salaries expense...................................................87.000

Taxes expense.....................................................22,000

Utilities expense..................................................40.000

Instructions

1. Prepare an income statement for the year ending May 31, 20Y2.

2. Prepare a retained earning statement for the year ending May 31, 20Y7.

3. Prepare a balance shoot as of May 31, 20Y7.

4. Prepare a statement of cash flows for the year ending May 31, 20Y7.