Analyzing Transactions Using the Financial Statement Effects Template Hanlon Advertising Company began the current month with the following balance sheet. Cash $ 80,000 Liabilities $ 70,000 Noncash assets 135,000 Contributed capital 110,000 Earned capital 35,000 Total assets $215,000 Total liabilities and equity $215,000 Following are summary transactions that occurred during the current month. 1. The company purchased supplies for $10,000 cash; none were used this month. 2. Services of $5,000 were performed this month on credit. 3. Services were performed for $20,000 cash this month. 4. The company purchased advertising for $16,000 cash; the ads will run next month. 5. The company received $2,400 cash as partial payment on accounts receivable from transaction 2. 6. The company paid $6,800 cash toward the accounts payable from the prior month. 7. Paid $6,200 cash toward this month's wages expenses. 8. The company declared and paid dividends of $1,000 cash. (a) Record the effects of each transaction using the financial statement effects template. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Cash Asset + Noncash Assets = Liabilities + Contributed Capital Earned Capital Revenue - Expenses = Net Income Transaction Beginning bal. Ending balance (b) Prepare the income statement for this month and the balance sheet as of month-end. Do not use negative signs with any of your answers below. Hanlon Advertising Company Income Statement Sales revenue $ Total expenses Net income Hanlon Advertising Company Retained Earnings Reconciliation Retained earnings. beginning of month $ Net income Dividends Retained earnings. end of month Hanlon Advertising Company Balance Sheet Liabilities Contributed capital Retained earnings Total equity $ Total liabilities and equity $ Cash Noncash assets Total assets Previous Save Answers