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. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Cash Asset Noncash Assets Contributed Capital = Liabilities + Earned Capital + Revenue Expenses = Net Income Transaction Beginning bal. 1 2 3 4 5 6 7 8 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 $ Do not use negative signs with any of your answers below. 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 Liabilities $ Contributed capital Retained earnings Total equity Total liabilities and equity $ Cash $ Noncash assets Total assets $