on may 1 robert neupert started skyline flying school a company that provides flying 543577

On May 1, Robert Neupert started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May.

Robert Neupert made no additional investment in May, but he withdrew $1,700 in cash for personal use.

Instructions

(a) Prepare an income statement and owner’s equity statement for the month of May and a balance sheet at May 31.

(b) Prepare an income statement and owner’s equity statement for May assuming that the data above need to be adjusted for the following items: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $3,300 of fuel expense was incurred but not paid.