eBook Question 5 Not complete Marked out of 156.00 P Flag question Analyzing Transactions and Adjustments Using the Financial Statement Effects Template On March 1, S. Penman launched AniFoods Inc., an organic foods retailing company. Following are the transactions for its first month of business. 1. S. Penman contributed $160,000 cash to the company in return for common stock. Penman also lent the company $88,000. This $88,000 note is due one year hence. 2. The company purchased equipment in the amount of $80,000, paying $16,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $128,000 cash in March. 4. The company had March sales of $160,000, of which $96,000 was for cash and $64,000 on credit. Total cost of goods sold for its March sales was $112,000. 5. The company purchased future advertising time from a local radio station for $16,000 cash. 6. During March, $12,000 worth of radio spots purchased in transaction 5 are aired. The remaining spots will be aired in April. 7. Employee wages earned and paid during March total $27.200 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $1,600 in wages that will be paid in the next period. 9. The company recorded $3,200 of depreciation for March relating to its equipment. a. Record the effect of each transaction using the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Transaction Noncash Assets = Contrib. Capital Earned Capital Revenues Cash Asset 160000 Income Statement Expenses 0- = Net Income 0 = 0 0 0 0 Cash Common Stock e 2 o 0 = 0 0 0 0 - 0 = 0 3. 0 0 = 0 0 0 0 0 = 0 4 0 64.000 = 0 0 0 0 0 = 0 0 5. 0 0 0 0 0- 0 = 0 6. 0 0 = 0 0 0 0 - 0 = 0 7. 0 = 0 0 0 0 = 0 8 0 0 0 0 0 - 0 = 9. 0 0 = 0 0 0 0 0 = 0 b. Prepare a March income statement and a balance sheet as of the end of March for AniFoods Inc. Note: Do not use negative signs with your answers. b. Prepare a March income statement and a balance sheet as of the end of March for AniFoods Inc. Note: Do not use negative signs with your answers. 0 AniFoods, Inc. Income Statement For Month Ended March 31 Sales Cost of goods sold Gross profit Advertising expense Wages expense Depreciation expense 0 0 0 0 Net income 0 Cash 5 AniFoods, Inc. Balance Sheet Mar 31 0 Wages payable 0 Note payable to owner) 0 Note payable (to vendor) 0 Total liabilities 0 0 0 Accounts receivable 0 Inventory Prepaid advertising Net PPE 0 0 Common stock Retained earnings