. The following are the amounts of Care Corporation’s assets and liabilities at May 31, 2010 and its revenue and expenses for the year ended on that date, listed in alphabetical order. Care...

.
The following are the amounts of Care Corporation’s assets and liabilities at May 31, 2010 and its revenue and expenses for the year ended on that date, listed in alphabetical order.  Care Corporation had share capital of P50,000 and accumulated profits of P87,390 on June 1, the beginning of the fiscal year. During the year, the corporation paid cash dividends of P25,000.

Accounts payable                                        P 48,320

Accounts receivable                                       68,840

Advertising expense                                       14,600

Cash                                                                  40,150

Insurance expense                                         12,000

Land                                                               150,000

Miscellaneous expense                                    3,140

Notes payable                                                  22,000

Prepaid insurance                                             2,000

Rent expense                                                   43,100

Salaries payable                                                18,600

Salary expense                                               186,000

Sales                                                                  378,500

Supplies                                                                3,280

Supplies expense                                              11,700

Taxes expense                                                   16,900

Utilities expense                                               28,100

Required:

• Prepare an income statement for the year ending May 31, 2010 exercising care to include each item of expense listed.


• Prepare a balance sheet as of May 31,2010. There was no change in the amount of share capital during the year.