The Adia Company was incorporated on April 1, 20X1. Adia had 8 holders of common stock. Jack Adia, who was the president and CEO, held 59% of the shares. The company rented space in chain discount stores and specialized in selling running shoes Adia's first location was a store in Lakewood Center Mall. The following events occurred during April: (Click the icon to view the events.) Read the requirements Requirement 1. Prepare an analysis of Adia Company's transactions, employing the equation approach. Columns include one for Equipment and Fixtures and one for Note Payable. Enter the transactions into the equation one transaction at a time, beginning with 'a". For each transaction effecting Retained Earnings, select whether the item is a revenue (R) or expense (E). Enter transaction "d" in two parts: d. 1. to record the sale and d.2. to record the cost of the inventory sold After entering all of the transactions, calculate the balance for each account in the equation at the end of April. (Enter decreases with a minus sign or parentheses and leave any unused cells blank. Abbreviations used: A/R = Accounts receivable: Merch - Merchandise: Equip = Equipment: A/P = Accounts payable: N/P Notes payable.) Assets Liabilities + Stockholders' Equity Merch Prepaid Equip and Retained Paid-in Capital + AR Inventory it Rent Fixtures = A/P + N/P Earnings Cash + 30,000 + + + + + + i More Info a. The company was incorporated. Common stockholders invested $120,000 cash. b. Purchased merchandise inventory for cash, $30,000. C. Purchased merchandise inventory on open account, $15,000. d. Merchandise carried in inventory at a cost of $25,000 was sold for $150,000, $50,000 for cash and $100,000 on open account. Adia carties and will collect these accounts receivable. e. Collection of a portion of the preceding accounts receivable, $26,000. f. Payments of a portion of accounts payable, $11,000. See transaction c. g. Special display equipment and fixtures were acquired on April 1 for $54,000. Their expected useful life was 36 months with no terminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Adia paid $18,000 as a down payment and signed a promissory note for $36,000. h. On April 1, Adia signed a rental agreement with Lakewood Center Mall. The agreement called for rent of $2,500 per month, payable quarterly in advance. Therefore, Adia paid $7,500 cash on April 1. i. The rental agreement also called for a payment of 10% of all sales. This payment was in addition to the flat $2,500 per month. In this way, Lakewood Center Mall would share in any success of the venture and be compensated for general services such as cleaning and utilities. This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Adia made the payment on April 30. j. Wages, salaries, and sales commissions were all paid in cash for all earnings by employees. The amount was $51,000. k. Depreciation expense for April was recognized. See transaction g. 1. The expiration of an appropriate amount of prepaid rental services was recognized. See transaction h. i Requirements X 1. Prepare an analysis of Adia Company's transactions, employing the equation approach. Columns include one for Equipment and Fixtures and one for Note Payable. 2. Prepare a balance sheet as of April 30, 20X1, and an income statement for the month of April. Ignore income taxes. 3. Given these sparse facts, analyze Adia's performance for April and its financial position as of April 30, 20X1