Analyzing transactions and preparing financial statements. Given the following transactions(,L O 3)
1. Aniseh Maximous opened Fresh Pastry Bakery by contributing $15,000 on April 1,2008, in exchange for common stock.
2. Fresh Pastry borrowed $10,500 from the bank on April 1. The note is a l-year, l2% note, with both principal and interest to be repaid on March 31,2009.
3. Aniseh paid $1,500 cash to rent equipment for the shop for the first month.
4. Aniseh paid $655 cash for the utility bill for the lst month.
5. Fresh Pastry was a hit and earned $7,500 in revenue the first month, all cash.
6. Aniseh hired a friend to be the customer service specialist for the pastry shop and paid $475 cash in salary expense for the first month.
7 . The business paid distributions to owners in the amount of $ 1 ,000 for the first month.
8. At the end of the month, $105 of interest payable is due on the note from #2.
Required
a. Show how each transaction affects the accounting equation.
b. Prepare the four basic financial statements for the month of April. (The balance sheet at April 30.)
c. Give one additional piece of information related to the transactions that could be recorded in an information system for a purpose other than the financial statements.