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 $100,000 cash to the company in return for common stock. Penman also lent

the company $55,000. This $55,000 note is due one year hence.

2. The company purchased equipment in the amount of $50,000, paying $10,000 cash and signing a

note payable to the equipment manufacturer for the remaining balance.

3. The company purchased inventory for $80,000 cash in March.

4. The company had March sales of $100,000, of which $60,000 was for cash and $40,000 on credit.

Total cost of goods sold for its March sales was $70,000.

5. The company purchased advertising time from a local radio station for $10,000 cash.

6. During March, $7,500 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 $17,000 cash.

8. Prior to disclosing the financial statements, the company recognized that employees had earned an

additional $1,000 in wages that will be paid in the next period.

9. The company recorded $2,000 of depreciation for March relating to its equipment.

Required

a. Record the effect of each transaction using the financial statement effects template.

b. Prepare a March income statement and a balance sheet as of the end of March for AniFoods Inc.

For part b could you kindly prepare the Income statement and balance sheet per the attached template listing out the different accounts . I have attached an example for Income statement and Balance sheet for your reference.

Balance sheet as of October 31, 2019 Assets Current Assets Cash Income Statement For the month end October 31, 2019 Revenue 50,000 Cost of Goods Sold 30,000 Gross Margin 20,000 Operating Expenses Wage Expense 12,000 Interest Expense 1,000 Dep. Expense 500 Operating Income 6,500 90,000 10,000 Inventory Non Current Asssets PPE, net 94,500 194,500 Total Assets *No other income/loss *No income tax 40,000 Liabilities Current Liabilities Acc. Payable Non Current Liab. Loan Pay. Total Liabilities Equity Common Stock Retained Earnings Total Equity Total Liab. & Equity 100,000 140,000 50000 4,500 54500 194,500