Question
Analyzing Transactions Using the Financial Statement Effects Template Hanlon Advertising Company began the current month with the following balance sheet. Cash $ 80,000 Liabilities $
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.
- The company purchased supplies for $5,000 cash; none were used this month.
- Services of $2,500 were performed this month on credit.
- Services were performed for $10,000 cash this month.
- The company purchased advertising for $8,000 cash; the ads will run next month.
- The company received $1,200 cash as partial payment on accounts receivable from transaction 2.
- The company paid $3,400 cash toward the accounts payable balance reported at the beginning of the month.
- Paid $3,500 cash toward this month's wages expenses.
- The company declared and paid dividends of $500 cash.
(a) Record the effects of each transaction using the financial statement effects template.
Use negative signs with your answers, when appropriate.
Balance Sheet | ||||||||||
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Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contributed Capital | + | Earned Capital | |
Beginning bal. | ||||||||||
1 | ||||||||||
2 | ||||||||||
3 | ||||||||||
4 | ||||||||||
5 | ||||||||||
6 | ||||||||||
7 | ||||||||||
8 | ||||||||||
Ending balance |
Income Statement | ||||
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Revenue | - | Expenses | = | Net Income |
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
. | . | . | ||
(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 | $ |
Add: Net income | |
Less: Dividends | |
Retained earnings. end of month |
Hanlon Advertising Company Balance Sheet
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