Question
Analyzing Transactions and Adjustments Using the Financial Statement Effects Template Record the effect of each of the following transactions for Hora Company using the financial
Analyzing Transactions and Adjustments Using the Financial Statement Effects Template Record the effect of each of the following transactions for Hora Company using the financial statement effects template. a. Wages of $1,200 are earned by employees but not yet paid. b. $4,800 of inventory is purchased on credit. c. Inventory purchased in transaction (b) is sold for $9,600 on credit. d. Collected $7,200 cash from transaction (c). e. Equipment is acquired for $12,000 cash. f. Recorded $2,400 depreciation expense on equipment from transaction (e). g. Paid $24,000 cash toward a note payable that came due. h. Paid $4,800 cash for interest on borrowings. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.
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Balance Sheet Liabilities Transaction Income Statement Expenses Cash Asset Noncash Assets Contrib. Capital + Earned Capital Revenues = Net Income a. b. c. $ d. = + e. Accounts Payable Accounts Receivable Accumulated Depreciation Cash Cost of Goods Sold Depreciation Expense Equipment Fees Revenue Insurance Expense Interest Expense Interest Receivable Inventory Note Payable PPE Prepaid Interest Prepaid Rent Retained Earnings Sales Service Fees Earned Unearned Fees Revenue f. 8. > h. = > + Check Prepaid Interest Prepaid Rent Retained Earnings Sales Service Fees Earned Unearned Fees Revenue Wages Expense Wages Payable N/AStep by Step Solution
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