Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template.

1. Shareholders contribute $20,000 cash to the business in exchange for common stock.

2. Employees earn $1,000 in wages that have not been paid at period-end.

3. Inventory of $6,000 is purchased on credit.

4. The inventory purchased in transaction 3 is sold for $9,000 on credit.

5. The company collected the $9,000 owed to it per transaction 4.

6. Equipment is purchased for $10,000 cash.

7. Depreciation of $2,000 is recorded on the equipment from transaction 6.

8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,600 of supplies are still available. No supplies were purchased during this period.

9.The company paid $20,000 cash toward the principal on a note payable; also, $1,000 cash is paid to cover this note's interest expense for the period.

10. The company receives $16,000 cash in advance for services to be delivered next period.

Use negative signs with your answers, when appropriate. Hint: For transaction 4, enter the net effect for balance sheet answers.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
1	Answer		Answer	=	Answer		Answer		Answer
2	Answer		Answer	=	Answer		Answer		Answer
3	Answer		Answer	=	Answer		Answer		Answer
4	Answer		Answer	=	Answer		Answer		Answer
5	Answer		Answer	=	Answer		Answer		Answer
6	Answer		Answer	=	Answer		Answer		Answer
7	Answer		Answer	=	Answer		Answer		Answer
8	Answer		Answer	=	Answer		Answer		Answer
9	Answer		Answer	=	Answer		Answer		Answer
10	Answer		Answer	=	Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
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