The Johnson Drafting Company was started on March |, 2000 to draw blueprints for building contractors. The following transactions of the company occurred during March:

Date Transactions 3/I M. Johnson, the owner, started the business by investing $15,000 cash.

3/2 Land and a small office building were purchased at a cost of $4,000 and $20,000, respectively.

A down payment of $8,000 was made, and a note for $16,000 was signed. The note is due in one year.

3/3 Cash of $4,800 was paid to purchase computer drafting equipment.

3/8 Drafting supplies totaling $850 were purchased on credit. The amount is due in early April.

3/15 The company collected $1,500 from contractors for drafting services performed.

3/28 M.Johnson withdrew $1,000 for personal use.

3/29 The company received a $110 utility bill for March, to be paid in April.

3/30 The company paid $600 in salary to a drafting employee.

3/30 The company billed contractors $2,000 for drafting services performed during the last half of March.

3/31 | The company recorded the following adjustments:

(a) Depreciation of $80 on the office building

(b) Depreciation of $100 on computer drafting equipment

(c) Interest of $160 on note payable

(d) Drafting supplies used of $150 Required: (1) Using the accounting equation format shown in the chapter, record the preceding transactions.

(2) Prove the equality of the accounting equation at the end of March.

(3) Calculate the net income of the company for March.

(4) Prepare a balance sheet for the company on March 31, 2000.  lo7