P1.7B (LO 4) (Prepare financial statements.) On May 1, 2024, Aero. Flying School Ltd. was formed. Its assets, liabilities, share capital, revenues, expenses, and dividends as at May 31 follow: Instructions Cash Accounts receivable Supplies Equipment Accounts payable Bank loan payable Common shares Service revenue Interest expense Rent expense Repairs and maintenance expense Fuel expense Office expense Salaries expense Income tax expense Dividends declared $ 26,900 22,600 15,000 372,500 6,400 241,000 180,000 215,300 12,500 12,100 40,900 85,400 12,700 36,600 2,800 2,700 a. Prepare a statement of income, statement of changes in equity, and statement of financial position for the month of May. b. Explain why it is necessary to prepare the financial statements in the order listed in part (a).

P1.7B (LO 4) (Prepare financial statements.) On May 1, 2024, Aero. Flying School Ltd. was formed. Its assets, liabilities, share capital, revenues, expenses, and dividends as at May 31 follow: Instructions Cash Accounts receivable Supplies Equipment Accounts payable Bank loan payable Common shares Service revenue Interest expense Rent expense Repairs and maintenance expense Fuel expense Office expense Salaries expense Income tax expense Dividends declared $ 26,900 22,600 15,000 372,500 6,400 241,000 180,000 215,300 12,500 12,100 40,900 85,400 12,700 36,600 2,800 2,700 a. Prepare a statement of income, statement of changes in equity, and statement of financial position for the month of May. b. Explain why it is necessary to prepare the financial statements in the order listed in part (a).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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