Question

Question 1 Not yet answered Marked out of 100.00 P Flag question Analyzing Transactions and Adjustments Using the Financial Statement Effects Template 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 $220,000 cash to the company in return for common stock. Penman also lent the company $121,000. This $121,000 note is due one year hence. 2. The company purchased equipment in the amount of $110,000, paying $22,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $176,000 cash in March. 4. The company had March sales of $220,000, of which $132,000 was for cash and $88,000 on credit. Total cost of goods sold for its March sales was $154,000. 5. The company purchased future advertising time from a local radio station for $22,000 cash. 6. During March, $16,500 worth of radio spots purchased in transactions are aired. The remaining spots will be aired in April. 7. Employee wages earned and paid during March total $37,400 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $2,200 in wages that will be paid in the next period. 9. The company recorded 54,400 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 Note: Indicate a decrease in an account category by including a negative side with the amount. transaction.

Answer 1

Balancesheet Income Statement liabiliti Noncash Asset S.No es + Contribution Earned Capital + Capital Revenue - Expenses = Net income 220000 Cash Asset 1 220000 121000 2 -22000 31-176000 4 132000 121000 88000 220000 154000 66000 110000 176000 88000 -154000 22000 -16500 -22000 5 6 -37400 16500 37400 2200 4400 8 2200 9 -4400 5500 5500 220000 215600 221100 211200 220000 214500 5500 profit Assets 436700 Liabilities & Stockholder Equity 436700

AniFoods, Inc Income statements For Month Ended March 31 Revenue Sales $ 220000 Less : Cost of Goods sold 154000 Gross Profit 66000 Expense Radio spots 16500 wages earned 39600 Depreciation 4400 Total expense 60500 Net Income $ 5500

AniFoods, Inc Balancesheet Mar-31 Amount ($) Assets Liablities Amount ($) 215600 88000 2200 Cash Account Receivable Inventory Total Current Assets Equipement Less : Depreciation 2200 121000 88000 211200 110000 -4400 114400 16500 Wages Payable Note Payable(to owner) Note Payable(to vendor) 305800 Total Liabilties Stockholders Equity Common Stock Retained earning Total Stockholders Equity 130900 436700 Total liabilities and stockholders' equity 220000 5500 225500 Radio spots Net PPE Total Assets 436700

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