Project 1 2 Instructions: 4 Project 1 in eCampus requires you to record transactions, prepare the financial statements and answer questions based on these transactions. in theyellow cells, you are required to record the transactions in the accounting equation below and prepare thefinancial statements in the worksheet titled 'Statements" before entering your answers into eCampus This must beyour own work; working with others is considered academic dishonesty. Shareholder's Equity During April, its first month ofbusiness, Honest Tea, Inc. Liabilities Cosh Other Assets Cormmon Stock Retained Earnings Check Account Title Amount Account Title Account Title A-L+SE issued $15,000 of stock to its owners, Earl Grey and Ginger Green, in exchange for cash Received a $8,000, 6% cash loan from the bank on April 1 ; the interest and principal are dueJune 30 Paid $3,200 for 800 baes oftea it plans to sell 10 True 12 13 3 Purchased a display stand by paying $7,200 on April1 True Sold 300 bags oftea at a sales price of $15 each for cash; record thesleand thecost ofthe sale Paid $500 at the end of the month to its employee for services performed in April 1s 5 16 17 7 Declared and paid a $150 cash dividend to its shareholders 18 8 Adjusted for $100 of depreciation on its equipment True True Adjusted for the $40 of interest owed on the bank loan; the interest and principal will be paid on June 30 19 20 True