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A number of business transactions carried out by Fordy, Inc are as follows
Feb 4
Deposited 80000 received from the sale of capital stock.
Feb 5
Borrowed 100,000 from the bank and signed a note payable.
Feb 6
paid 300 for stationery
Feb 7
purchased office furniture for the office and agreed to pay the account payable 7000 within 3 months
Feb 10
sold 500 shares of stock, receiving 75000.
Feb 18
submitted a bill for legal services, $5,000. expected to collect the amount within 2 weeks
Feb 20
Recorded 7500 of revenue received in cash.
Feb 25
paid office rent, 1000
Feb 28
paid dividends, 2,200
Q1) Analyze the effects of the preceding transactions on the accounting equation. (50 pts)
Q2) Prepare the income statement of Fordy for the month ended Feb 28, 2013. (20 pts)
Q3) Prepare the company's balance sheet at Feb 28, 2013. (30 pts)
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