Puja

The following cash transactions took place during March, the first month of business for Cats and Dogs Company:

  1. D.C. Dawg started a business, Cats and Dogs Company, by contributing $6,000.
  2. The Cats and Dogs Company borrowed $2,000 from the bank on March 1. The note is a 1-year, 12% note, with both principal and interest to be repaid on February 28 of next year.
  3. The company earned $900 in revenue.
  4. Expenses amounted to $650.
  5. Distributions to owners amounted to $25.

You are to complete the following tasks:

 

  1. Show how each cash transaction affects the accounting equation.
  2. Give one additional piece of information related to the transaction that could be recorded in an information system for a purpose other than the financial statements.
  3. Prepare the four basic financial statements for the month o

 

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