In the first month of its operations, Sarri Corporation, a manufacturer of home appliances, had the following transactions:

(1)	Incorporated on April 1, 2021. Issued 10,000,000 shares of common stock for $3 per stock.
(2)	Paid $120,000 for April and May rent on administrative offices on April 1.
(3)	Acquired factory equipment for $6,000,000 cash on April 1. Equipment has a 5 year life with a $600,000 salvage value. The company uses straight-line depreciation method.
(4)	On April 4, purchased $10,000,000 of raw materials with cash.
(5)	On April 15, borrowed a 5-year loan of $7,000,000 from WF Bank with an annual interest of 12 percent. Interest will be paid at the end of every year and principal will be paid back at the end of the 5th year.
(6)	On April 10, purchased $5,000,000 additional raw materials on account.
(7)	Paid $500,000 in payroll on April 30; $400,000 to factory/production workers and $100,000 to administrative staff.
(8)	Paid utilities of $180,000 on April 30; $150,000 for the factory/production plant and $30,000 for administrative offices.
(9)	Sales for the month totaled $10,000,000, and 40 percent of sales are cash sales.
(10)	Paid $140,000 for April rent on factory space on April 30.
(11)	Sold some of its inventory during April. The cost of inventory sold equals 30 percent of the total production cost at the end of the month.
(12)	1 percent of the outstanding receivables as of April 30 are estimated to be uncollectible.
(13)	Corporate income tax rate is 30 percent, and will be paid in April of next year.
(14)	Declared cash dividends of $820,000 on April 30 to be paid on May 20.

Required:

Prepare Sarris income statement for April 2021, and statement of retained earnings and balance sheet as of April 30, 2021. Indicate the effect of each transaction on the balance sheet equation.