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 $120,000 cash to the company in return for common stock. Penman also lent the company $66,000. This $66,000 note is due one year hence. 2. The company purchased equipment in the amount of $60,000, paying $12,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $96,000 cash in March. 4. The company had March sales of $120,000, of which $72,000 was for cash and $48,000 on credit. Total cost of goods sold for its March sales was $84,000. 5. The company purchased future advertising time from a local radio station for $12,000 cash. 6. During March, $9,000 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 $20,400 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $1,200 in wages that will be paid in the next period. 9. The company recorded $2,400 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. Transaction Cash Asset 2. Noncash Assets Balance Sheet Liabilities Contrib. Capital Earned Capital 10 10 = 0 0 3. 4. 48,000 10 0 = 5. Revenues Income Statement Expenses Net Income 0 0 10 0 0 = 6. 7. 0 0 10 = 8. D 9. 10 0 10 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.