Analyzing Transactions Using the Financial Statement Effects Template and Preparing Financial Statements Kross, Inc., provides appraisals and feasibility studies. On January 1, 2015, its beginning account balances are as follows: Cash, $6,700; Accounts Receivable, $14,800; Notes Payable, $2,500; Accounts Payable, $600; Retained Earnings, $12,400; and Common Stock, $6,000. The following transactions occurred during January, and company accounts include the following: Cash, Accounts Receivable, Vehicles, Accounts Payable, Notes Payable, Services Revenue, Rent Expense, Interest Expense, Salary Expense, Utilities Expense, Common Stock, and Retained Earnings. 1. Paid $950 cash for January rent. 2. Received $8,800 cash on customers accounts. 3. Paid $500 cash toward accounts payable. 4. Received $1,600 cash for services performed for customers. 5. Borrowed $5,000 cash from bank and signed note payable for that amount. 6. Billed the city $6,200 for services performed, and billed other credit customers for $1,900 in services. 7. Paid $4,000 cash for salary of assistant. 8. Received $410 invoice for January utilities expense. 9. Declared and paid a $6,000 cash dividend. 10. Paid $9,800 cash to acquire a vehicle (on January 31) for business use. 11. Paid $50 cash to bank for January interest on notes payable. REQUIRED a. Using the nancial statement effects template, enter January 1 beginning amounts in the ap- propriate columns of the rst row. (Hint: Beginning balances for columns can include amounts from more than one account.) b. Report the effects for each of the separate transactions 1 through 11 in the nancial statement effects template set up in part a. Total all columns and prove that (1) assets equal liabilities plus equity at January 31, and (2) revenues less expenses equal net income for January. c. Prepare its income statement for January 2015. d. Prepare its statement of stockholders equity for January 2015. e. Prepare its balance sheet at January 31, 2015.