Analyzing transactions and preparing financial statements. Given the following transactions, (LO 3)

1. Aniseh Maximous opened Fresh Pastry Bakery by contributing \(\$ 15,000\) on April 1, 2008, in exchange for common stock.

2. Fresh Pastry borrowed \(\$ 10,500\) from the bank on April 1. The note is a 1 -year, \(12 \%\) note, with both principal and interest to be repaid on March 31, 2009.

3. Aniseh paid \(\$ 1,500\) cash to rent equipment for the shop for the first month.

4. Aniseh paid \(\$ 655\) cash for the utility bill for the first month.
5. Fresh Pastry was a hit and earned \(\$ 7,500\) in revenue the first month, all cash.
6. Aniseh hired a friend to be the customer service specialist for the pastry shop and paid \(\$ 475\) cash in salary expense for the first month.
7. The business paid distributions to owners in the amount of \(\$ 1,000\) for the first month.
8. At the end of the month, \(\$ 105\) of interest payable is due on the note from \(\# 2\).
\section*{Required}

a. Show how each transaction affects the accounting equation.

b. Prepare the four basic financial statements for the month of April. (The balance sheet at April 30.)

c. Give one additional piece of information related to the transactions that could be recorded in an information system for a purpose other than the financial statements.