On March 1, S. Penman launched AniFoods Inc., an organic foods retailing company. Following are the...

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On March 1, S. Penman launched AniFoods Inc., an organic foods retailing company. Following are the transactions for its first month of business. 1.5. Penman contributed $160,000 cash to the company in return for common stock. Penman also lent the company $88,000. This $88,000 note is due one year hence. 2. The company purchased equipment in the amount of $80,000, paying $16,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $128,000 cash in March. 4. The company had March sales of $160,000, of which $96,000 was for cash and $64,000 on credit. Total cost of goods sold for its March sales was $112,000. 5. The company purchased future advertising time from a local radio station for $16,000 cash. 6. During March, $12,000 worth of radio spots purchased in transaction 5 are aired. The remaining spots will be aired in April. 7. Employee wages earned and paid during March total $27,200 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $1,600 in wages that will be paid in the next period. 9. The company recorded $3,200 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 transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction 1. 2. 3. 4. 5. 6. 7. 8. 9. Cash Asset + + + ÷ ÷ + + + → + Noncash Assets • • + ✰ 64,000 = → + + ÷ + # + Balance Sheet Liabilities + + + ÷ + + + + + + Contrib. Capital + ● + + # + + + + + Earned Capital ● • + # # + + • Revenues ● • + # # # + + • Income Statement Expenses + + + ÷ ÷ + + + + - Net Income b. Prepare a March income statement and a balance sheet as of the end of March for AniFoods Inc. Note: Do not use negative signs with your answers. AniFoods, Inc. Income Statement For Month Ended March 31 $ Sales Cost of goods sold Gross profit Advertising expense Wages expense Depreciation expense Net income Cash Accounts receivable Inventory Prepaid advertising Net PPE Total assets $ $ $ AniFoods, Inc. Balance Sheet Mar 31 Wages payable Note payable (to owner) Note payable (to vendor) Total liabilities $ Common stock Retained earnings Total liabilities and equity $ On March 1, S. Penman launched AniFoods Inc., an organic foods retailing company. Following are the transactions for its first month of business. 1.5. Penman contributed $160,000 cash to the company in return for common stock. Penman also lent the company $88,000. This $88,000 note is due one year hence. 2. The company purchased equipment in the amount of $80,000, paying $16,000 cash and signing a note payable to the equipment manufacturer for the remaining balance. 3. The company purchased inventory for $128,000 cash in March. 4. The company had March sales of $160,000, of which $96,000 was for cash and $64,000 on credit. Total cost of goods sold for its March sales was $112,000. 5. The company purchased future advertising time from a local radio station for $16,000 cash. 6. During March, $12,000 worth of radio spots purchased in transaction 5 are aired. The remaining spots will be aired in April. 7. Employee wages earned and paid during March total $27,200 cash. 8. Prior to disclosing the financial statements, the company recognized that employees had earned an additional $1,600 in wages that will be paid in the next period. 9. The company recorded $3,200 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 transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction 1. 2. 3. 4. 5. 6. 7. 8. 9. Cash Asset + + + ÷ ÷ + + + → + Noncash Assets • • + ✰ 64,000 = → + + ÷ + # + Balance Sheet Liabilities + + + ÷ + + + + + + Contrib. Capital + ● + + # + + + + + Earned Capital ● • + # # + + • Revenues ● • + # # # + + • Income Statement Expenses + + + ÷ ÷ + + + + - Net Income b. Prepare a March income statement and a balance sheet as of the end of March for AniFoods Inc. Note: Do not use negative signs with your answers. AniFoods, Inc. Income Statement For Month Ended March 31 $ Sales Cost of goods sold Gross profit Advertising expense Wages expense Depreciation expense Net income Cash Accounts receivable Inventory Prepaid advertising Net PPE Total assets $ $ $ AniFoods, Inc. Balance Sheet Mar 31 Wages payable Note payable (to owner) Note payable (to vendor) Total liabilities $ Common stock Retained earnings Total liabilities and equity $