The following transactions apply to Molly’s Maid Service during April 2012:

a. Molly started the business by depositing $5,000 in a business checking account on April 1 in exchange for common stock.

b. The company provided services to clients and received $4,215 in cash.

c. The company borrowed $1,200 from the bank for the business by signing a note.

d. The company paid $1,125 of operating expenses.

e. The company purchased a new computer for $3,000 cash to use to keep track of its customers, starting next month.

f. The company declared and distributed $1,050 to the owner as dividends.

Requirements

1. Enter the transactions into the accounting equation.

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

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

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