1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the following format. Identify each transaction with the date.
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Assets =
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Liabilities +
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Stock. Equity I
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Date
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Cash
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Accts. 1 Rec.
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Equipment
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Supplies
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Accts. Pay.
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Cap.
Stock
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Ret.
Earn.
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2. Prepare an income statement for the month ended May 31, 2010.
3. Prepare a classified balance sheet at May 31, 2010.
4. Why do you think the two students decided to incorporate their business rather than operate it as a partnership?