Prepare an income statement and a statement of retained earnings for the month of May.Also,prepare a balance sheet as of May 31,2017,for McGuire Corporation.The financial transactions of McGuire Corporation for the month of May,their first month of operations,are as follows:
• On May 1,2017,McGuire Corporation issued common stock in exchange for $20,000 cash from a stockholder,Deborah Merchant.
• On May 3,the corporation borrowed $5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.
• On May 7,the corporation purchased $15,000 of equipment for cash.
• On May 8,McGuire Corporation rendered service to a client and earned $3,000 in cash.
• On May 12,the corporation incurred a repair expense of $1,800 and promised to pay the repair contractor the following month.
• On May 18,the corporation rendered service to a new client in the amount of $8,000 on account,as the client promised to pay the following month.
• At the end of May,McGuire Corporation distributed cash dividends of $1,500.

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The Answer of Prepare an income statement and a statement of retained earnings for the month of May.Also,prepare a balance sheet as of May 31,2017,for McGuire Corporation.The financial transactions of McGuire Corporation for the month of May,their first month of operations,are as follows:
• On May 1,2017,McGuire Corporation issued common stock in exchange for $20,000 cash from a stockholder,Deborah Merchant.
• On May 3,the corporation borrowed $5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.
• On May 7,the corporation purchased $15,000 of equipment for cash.
• On May 8,McGuire Corporation rendered service to a client and earned $3,000 in cash.
• On May 12,the corporation incurred a repair expense of $1,800 and promised to pay the repair contractor the following month.
• On May 18,the corporation rendered service to a new client in the amount of $8,000 on account,as the client promised to pay the following month.
• At the end of May,McGuire Corporation distributed cash dividends of $1,500.

Prepare an Income Statement and a Statement of Retained Earnings