Analyze business transactions and prepare the.financial statements. The following cash transactions took place during April 2009, the first month of business for Fast Food Supplies Inc. (LO 4)
1. Kristin Adams started a business, Fast Food Supplies Inc. by contributing $6,000. She received common stock in exchange.
2. The company earned and received cash of $900 in revenue.
3. The company paid expenses of $650 in cash.
4. Company paid dividends of $25.
5. On April 30, the company borrowed $3,000 from the local bank by signing a 3-year note.
Required
a. Show how each transaction affects the accounting equation.
b. Prepare the four basic financial statements for the month of April. (Balance Sheet at April 30, 2009)