P1-3A On May 1, Jeff Wilkins 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, 2010, and the revenues and expenses for the month of May. Cash Accounts Receivable Equipment Lesson Revenue Advertising Expense $ 5,600 7,200 64,000 7,500 500 Notes Payable Rent Expense Repair Expense Fuel Expense Insurance Expense Accounts Payable $30,000 1,200 400 2,500 400 800
P1-3A On May 1, Jeff Wilkins 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, 2010, and the revenues and expenses for the month of May. Cash Accounts Receivable Equipment Lesson Revenue Advertising Expense $ 5,600 7,200 64,000 7,500 500 Notes Payable Rent Expense Repair Expense Fuel Expense Insurance Expense Accounts Payable $30,000 1,200 400 2,500 400 800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![P1-3A On May 1, Jeff Wilkins 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, 2010, and the revenues and expenses for the month of May.
Cash
Accounts Receivable
Equipment
Lesson Revenue
Advertising Expense
$ 5,600
7,200
64,000
7,500
500
Notes Payable
Rent Expense
Repair Expense
Fuel Expense
Insurance Expense
Accounts Payable
$30,000
1,200
400
2,500
400
800
Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use.
Instructions
(a) Prepare an income statement and owner's equity statement for the month of May and a bal-
ance sheet at May 31.
(b) Prepare an income statement and owner's equity statement for May assuming the following
data are not included above: (1) $900 of revenue was earned and billed but not collected at
May 31, and (2) $1,500 of fuel expense was incurred but not paid.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18e7e05d-1ad3-40d8-afa7-d1da2c70c2d7%2F627d5874-5c69-45dd-b314-a137497f2c09%2Fu20u46b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P1-3A On May 1, Jeff Wilkins 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, 2010, and the revenues and expenses for the month of May.
Cash
Accounts Receivable
Equipment
Lesson Revenue
Advertising Expense
$ 5,600
7,200
64,000
7,500
500
Notes Payable
Rent Expense
Repair Expense
Fuel Expense
Insurance Expense
Accounts Payable
$30,000
1,200
400
2,500
400
800
Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use.
Instructions
(a) Prepare an income statement and owner's equity statement for the month of May and a bal-
ance sheet at May 31.
(b) Prepare an income statement and owner's equity statement for May assuming the following
data are not included above: (1) $900 of revenue was earned and billed but not collected at
May 31, and (2) $1,500 of fuel expense was incurred but not paid.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education