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 $80,000 cash to the company in return for common stock. Penman also lent the company $44,000. This $44,000 note is due one year hence. 2. The company purchased equipment in the amount of $40,000, paying $8,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $64,000 cash in March. 4. The company had March sales of $80,000, of which $48,000 was for cash and $32,000 on credit. Total cost of goods sold for its March sales was $56,000. 5. The company purchased future advertising time from a local radio station for $8,000 cash. 6. During March, $6,000 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 $13,600 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $800 in wages that will be paid in the next period. 9. The company recorded $1,600 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 Cash Asset Noncash Assets Contrib. Capital + Earned Capital Revenues Transaction 1. Income Statement Expenses 0 0 0 0 . 0 0 Net Income 0 = 0 . . 2. o 0 0 0 0 3 0 0 0 0 0 0 ] D 0 0 4. 32,000 = 0 0 0 0 0 0 0 5. 0 0 - 0 0 D 0 0 . 0 . 0 6. 0 0 0 0 0 = . 0 = . 7. 0 0 . 0 O 0 0- 0 = O . e 0 B. 0 0 0 D 0 0 . A . 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. AniFoods, Inc. Income Statement For Month Ended March 31 Sales 5 80,000 Cost of goods sold 56,000 Gross profit 24,000 Advertising expense 8,000 Wages expense 14.400 Depreciation expense 1,600 Net income S 0 AniFoods, Inc. Balance Sheet Mar 31 $ 800 Cash Accounts receivable Inventory Prepaid advertising Net PPE 44,000 32,000 76,800 30,000 Wages payable $ 32,000 Note payable (to owner) 64,000 Note payable (to vendor) 2,000 Total liabilities 38,400 Common stock Retained earings 216,400 Total liabilities and equity $ 80,000 2,000 158,800 Total assets $