The following transactions apply to Bostic’s Auto Detail Service during November 2012:

a. Xavier Bostic started the business by depositing $3,350 in a business checking account on November 1 in exchange for common stock.

b. The company purchased a vacuum cleaner for $1,145 cash.

c. The company borrowed $1,575 from the bank for the business by signing a note.

d. The company provided services to clients and received $5,705 in cash.

e. The company paid $535 of operating expenses.

f. The company declared and made a distribution of $200 to the owner.

Requirements

1. Enter the transactions into the accounting equation.

2. What are the total assets of the company at November 30, 2012?

3. Prepare a statement of cash flows for the month ended November 30, 2012.

4. What was net income for the month ended November 30, 2012?