When completing the transaction ledge, make sure to write the name of the account affected, the amount for the transaction, and if it is a positive or negative. Also, make sure to enter your answers into the correct row for that transaction and clearly label the specific account affected. Each transaction is worth 1 point. After recording your transactions, you will need to construct an income statement (6 points) and a balance sheet (6 points) based on the transactions below. One point will be rewarded for handwriting this exam portion. This portion of the exam is worth a total of 25 points. Transactions You started "Cakes For You" this past August. The main revenue stream is of your fimm is baking wedding cakes. You have not yet hired an accountant so you are now faced with regarding all of the transactions for the first month of operations. 1. Your initial start-up funds were raised by selling stock to your parents. You were able to raise $90,000 from this stock sale. 2. You were also able to persuade a local community bank to provide you a $30",000 loan at 12% interest. 3. To start operations, you had to purchase multiple baking ovens. In total you purchased 2 ovens at a total cost of $30,000. You expect these ovens to last on average for 3 years before needing replacement and do not expect be able to sell them at the end of their life (no salvage value) 4. In additional to the oven purchased, you had to purchase some other baking supplies totaling $9,000. This purchase was made on credit and won't be due for 45 days. 5. At the beginning of the month, you also paid rent of $3,000 with cash 6. In the first month, you had $35,000 in cakes ordered on credit. You expect most of these credit sales will generate a cash inflow by the end of the month 7. During the month, you used up $4,000 worth of supplies to bake the cakes that were ordered 8. At the end of the month, you have collected $12,000 of the $35,000 of credit sales that were made during the month. 9. It is now the end of the month and you just paid yourself a monthly salary of $5,000 a month. This was paid with cash. 10. At the end of the month, you also paid your business's monthly utilities of $1,000. This was paid with cash 11. A final cash payment was made at the end of the month to cover the interest owed on the bank loan that you received earlier this month. 12. Finally, to maintain proper accounting records, you recorded one month of depreciation on the ovens. Liquity TITA When completing the transaction ledge, make sure to write the name of the account affected, the amount for the transaction, and if it is a positive or negative. Also, make sure to enter your answers into the correct row for that transaction and clearly label the specific account affected. Each transaction is worth 1 point. After recording your transactions, you will need to construct an income statement (6 points) and a balance sheet (6 points) based on the transactions below. One point will be rewarded for handwriting this exam portion. This portion of the exam is worth a total of 25 points. Transactions You started "Cakes For You" this past August. The main revenue stream is of your fimm is baking wedding cakes. You have not yet hired an accountant so you are now faced with regarding all of the transactions for the first month of operations. 1. Your initial start-up funds were raised by selling stock to your parents. You were able to raise $90,000 from this stock sale. 2. You were also able to persuade a local community bank to provide you a $30",000 loan at 12% interest. 3. To start operations, you had to purchase multiple baking ovens. In total you purchased 2 ovens at a total cost of $30,000. You expect these ovens to last on average for 3 years before needing replacement and do not expect be able to sell them at the end of their life (no salvage value) 4. In additional to the oven purchased, you had to purchase some other baking supplies totaling $9,000. This purchase was made on credit and won't be due for 45 days. 5. At the beginning of the month, you also paid rent of $3,000 with cash 6. In the first month, you had $35,000 in cakes ordered on credit. You expect most of these credit sales will generate a cash inflow by the end of the month 7. During the month, you used up $4,000 worth of supplies to bake the cakes that were ordered 8. At the end of the month, you have collected $12,000 of the $35,000 of credit sales that were made during the month. 9. It is now the end of the month and you just paid yourself a monthly salary of $5,000 a month. This was paid with cash. 10. At the end of the month, you also paid your business's monthly utilities of $1,000. This was paid with cash 11. A final cash payment was made at the end of the month to cover the interest owed on the bank loan that you received earlier this month. 12. Finally, to maintain proper accounting records, you recorded one month of depreciation on the ovens. Liquity TITA