Shanna Engel started up a new nonprofit organization in 2017 named Concern for Animal Shelter and Habitats (CASH). The organization places homeless animals in permanent homes. Transactions during the first month of operations were as follows:
1. Borrowed $50,000 from a local bank. No interest is due on the loan during the first month, and the principal does not have to be paid back for 2 years.
2. Signed a contract with a local carpenter to build a fence to enclose the backyard. The carpenter charges $250 per hour and expects the fence to take 10 hours to complete. He expects to begin work next month.
3. Bought 50 bags of dog food and 25 bags of cat food. Dog food costs $20 per bag, while cat food costs $30 per bag. The pet food was bought on credit (i.e., CASH has not yet paid for the supplies).
4. Bought a sign to hang in front of its building. The sign cost $5,000 and CASH paid for it when it was received.
5. Purchased and received an office computer, server, printer, and copier. The total cost of the equipment was $10,000, half of which was paid and the other half was still owed.