a. Marie and Paula opened up The Friendly Fisherman by contributing $23,100 on July 1, 2009, in exchange for common stock. b. The firm borrowed $12,000 from the bank on July 1. The note is a 3-year, 8% note, with both principal and interest to be repaid on June 30, 2010. C. The firm prepaid a year of rent for $1,100 that started August 1, 2009. d. The firm paid $950 cash for operating expenses for the first month. e. The firm earned $9,500 in revenue the first month. Of that amount, $7,000 was collected in cash. f. The firm hired an administrative assistant and paid $510 cash in salary expense for the first month. g. The firm declared and paid distributions to owners in the amount of $2,000 for the first month. h. At the end of the month, $27 of interest payable is due but not yet paid on the note from item (b). Requirement 1. Enter each transaction into the accounting equation. Begin by entering transaction a. Then, enter each transaction in the order they occurred. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Shareholders' Equity Contributed Capital + Retained Earnings Assets Liabilities + Account Account Account Account o . + + + + + + + + + + + + + + + + + + + + + + | || || || || || || || Requirement 2. Prepare the income statement, statement of changes in shareholders' equity, and statement of cash flows for the month of July. Also, prepare the balance sheet at July 31. Begin by entering the heading of the income statement, then complete the income statement. Expenses: Expenses: Now enter the headings for statement of changes in shareholders' equity. Then complete the contributed capital and retained earnings sections of the statement of changes in shareholders' equity. (Leave any unused cells blank.) Beginning common stock . Beginning retained earnings. ....... Beginning retained earnings....... Next, prepare the balance sheet by entering the headings, then enter the accounts with their corresponding amounts for the assets and liabilities and shareholders' equity sections. (Leave any unused cells blank.) Assets Liabilities and Shareholders' Equity Lastly, we need to prepare the statement of cash flows. Begin preparing the statement of cash flows by entering the heading, then complete the statement. (Leave any unused cells blank. Use parentheses or a minus sign to enter decreases in cash.) Cash from operating activities: Net cash from operations............ L UUAJII III IIIIIV U LIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash from financing activities: Net cash from financing ......... Net increase in cash ..... IVEL ILIUI case II casi