On Mareh 1, S. Penman (owner) launched AniFoods, Inc., an organic foods retailing company, Following are the transactions for its first month of business. S. Penman (owner) 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. The company purchased equipment in the amount of $50,000 cash in Mareh. The company had Mareh sales of $100,000 of which $60,000 was for cash and $40,000 on credit. Total cost of goods sold for its Mareh sales was $70,000. The company purchased future advertising time from a local radio station for $10,000 cash. During Mareh, %7,500 worth of radio spots purchased in transaction 5 are aired. The remaining spots will be aired in April. Employee wages earned and paid during Mareh total $17,000 cash. 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. The company recorded $2,000 of depreciation for Mareh relating to its equipment. Record the effect of each transaction using the financial statement effects template. Prepare a Mareh income statement and a balance sheet as of the end of Mareh for AniFoods, Inc