Transactions and Financial statements Van Jordan established an insurance agency on March 1, 20Y5, and completed the following transactions during March.

a. Opened a business bank account in the name of Jordan Insurance Inc. with a deposit of $50,000 in exchange for capital stock. b. Borrowing $25,000 by issuing a note payable. c. Received cash from fees earned, $28,000. d. Paid rent on office and equipment for the month, $3,000. e. Paid automobile expenses for the month, $1,800, and miscellaneous expenses, $900. f. Paid office salaries, $4,200. g. Paid interest on note payable, $100. h. Purchased land as a future building site, paying cash of $55,000. i. Paid dividends, $4,000.

Instructions:

1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework.

2. Briefly explain why the stockholders' investments and revenues increased stockholders' equity, while dividends and expenses decreased stockholders' equity.

3. Prepare an income statement and retained statement for March.

4. Prepare a balance sheet as of March 31, 20Y5.

5. Prepare a statement of cash flows for March.