Question

I need the Income Statement, Retained Earnings Statement, and Balance Sheet, based off of this information! There are five empty slots under the expenses column in the income statement that is especially confusing me.

Problem 1-3A On May 1, Sheffield Corp., a company that provides flying lessons, was started by using common stock in exchange for cash of $45,350. Following are the assets and liabilities of the company on May 31, 2019, and the revenues and expenses for the month of May. Cash $ 5,000 Notes Payable $28,000 Accounts Receivable 7,750 Rent Expense 1,050 Equipment 64,350 Maintenance and Repairs Expense 500 Service Revenue 7,150 Gasoline Expense 2,350 Advertising Expense 850 Utilities Expense 250 Accounts Payable 1,750 No additional investments were made in May, but the company paid dividends of $150 during the month.

Answer 1

• All working forms part of the answer
• Income Statement

Revenue:
Service Revenue	$             7,150.00
Expenses:
Advertisement expenses	$                 850.00
Rent expenses	$             1,050.00
Maintenance & repair expenses	$                 500.00
Gasoline expenses	$             2,350.00
Utilities expenses	$                 250.00
Total expenses	$             5,000.00
Net Income	$             2,150.00

• Statement of retained earnings

Beginning balance	$                                -
Add: Net Income	$                   2,150.00
Less: Dividends	$                       150.00
Ending Balance	$                   2,000.00

• Balance Sheet

ASSETS
Cash	$                   5,000.00
Accounts receivables	$                   7,750.00
Equipment	$                 64,350.00
Total Assets	$                 77,100.00
LIABILITIES & EQUITY
Accounts Payable	$                   1,750.00
Notes Payable	$                 28,000.00
Total Liabilities	$                 29,750.00
Common Stock	$                 45,350.00
Retained earnings	$                   2,000.00
Total Stockholder's Equity	$                 47,350.00
Total LIABILITIES & STOCKHOLDERS' EQUITY	$                 77,100.00