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prepare a table to summarize the following transaction as the effect the accounting equation

Q3-2A

Q3-5

Finanacal acounting 10edition with extra

Problem 3-2 Transaction Analysis and Financial Statements ast Roling Along Inc. was organized on May 1 by two colege students who recognized an LO3 to make moncy while spending their days at a beach along Lake Michigan. The two transactions occurred during tlhe first month of operationo catrapreneurs plan to rent bicjycles and in-line skates to weekend viton to the lLkctiront 1he business in exchange for slures of stock May 1: Purchased ten bicycle for $300 each on an open acount. The compuny has 30 days to pay fox the bicyeles May 5: Registered as a vendor with the city and paid tuhe $15 monthly fe May9: Parchased 20 pairs of in-linse skates at $125 per pair, 20 belmets at $50 cach, and 20 sets of protective gear . knee and cltor pads and wrist guards, at S45 per set fr cab. Purchased $100 in miscellancous supplics on account. The company has 30 days to pay foe the supplies. May 10: May 15: Paid $125 bill from loscal radio station for advertising for the last two weeks of May May 17: Customers rented in-line skates and bicycles for cash of $1,800. May 24: Billed the local park district $1,200 for in-line skating lessons provided to neighborhood children. The park disr is to pay unc half of the bill within five working days and the rest within 30 days May 29: Received 50% ofthe amonnt billed to the park district. May 30. Customers rented in linc shates and bicycles for cash of $3,000 May 30: Paid wages of S160 to a friend who helped over the weckend. May 31 Paid the balance duc on the bicycles Required 1. P Prepare a table to summarize the preceding transactions as they affecr the tion. Use the format in Exhibit 3-i. Identify cach transaction with the date tepare an income statement for the month of May Prepare a classified balance sheet at May 31 y do you think the two college students decided to incorporate their basiness rather than opcrate it as a partnership 4

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