A number of business transactions carried out by Fordy, Inc are as follows

Feb 4

Deposited 80000 received from the sale of capital stock.

Feb 5

Borrowed 100,000 from the bank and signed a note payable.

Feb 6

paid 300 for stationery

Feb 7

purchased office furniture for the office and agreed to pay the account payable 7000 within 3 months

Feb 10

sold 500 shares of stock, receiving 75000.

Feb 18

submitted a bill for legal services, $5,000. expected to collect the amount within 2 weeks

Feb 20

Recorded 7500 of revenue received in cash.

Feb 25

paid office rent, 1000

Feb 28

paid dividends, 2,200

Q1) Analyze the effects of the preceding transactions on the accounting equation. (50 pts)

Q2) Prepare the income statement of Fordy for the month ended Feb 28, 2013. (20 pts)

Q3) Prepare the company's balance sheet at Feb 28, 2013. (30 pts)