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 $5,000 cash; none were used this month.
2. Services of $2,500 were performed this month on credit.
3. Services were performed for $10,000 cash this month.
4. The company purchased advertising for $8,000 cash; the ads will run next month.
5. The company received $1,200 cash as partial payment on accounts receivable from transaction 2.
6. The company paid $3,400 cash toward the accounts payable balance reported at the beginning of the month.
7. Paid $3,500 cash toward this month's wages expenses.
8. The company declared and paid dividends of $500 cash.

(a) Record the effects of each transaction using the financial statement effects template.

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Ending balance	Answer		Answer		Answer		Answer		Answer

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(b) Prepare the income statement for this month and the balance sheet as of month-end.

Sales revenue	$Answer
Total expenses (enter as a positive)	Answer
Net income	$Answer

Retained Earnings Reconciliation

Retained earnings. beginning of month $Answer Add: Net income Answer Less: Dividends (enter as anegative) Answer Retained earnings. end of month $Answer

Balance Sheet

Cash	$Answer
Noncash assets	Answer
Total assets	$Answer

Liabilities	$Answer
Contributed capital	Answer
Retained earnings	Answer
Total equity	Answer
Total liabilities and equity	$Answer