For Puja

(What accounts are affected? Did they increase or decrease? What type of account is it? [asset, liability, equity])

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. (capital contribution-balance sheet)
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. (notes payable-balance sheet) (cash flow sheet-financing)
3. The company earned $900 in revenue.(income statement)(statement of cash flows-operating)
4. Expenses amounted to $650.(income statement)(statement of cash flows-operating)
5. Distributions to owners amounted to $25.(statement of retained earnings)(cash flow statement-financing)

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.(not related to the numbers, more informational.  Such as borrowed the money from the bank for the note, what was it for? What is the maturity of the note, etc..)
3. Prepare the four basic financial statements for the month of March. (format and headings matter)

Grading criteria is as follows: