Analyzing Transactions Using the Financial Statement Effects Template

Record the effect of each of the following independent transactions using the financial statements effects template provided. Confirm that Assets = Liabilities + Equity for each transaction.

(1) Receive 25,000 in exchange for common stock.

(2) Borrow 5,000 from bank.

(3) Purchase 1,000 of supplies inventory on credit.

(4) Pay 1,000 cash to supplier in transaction 3.

BALANCE SHEET

Cash asset + non cash asset = liabilities + contributed capital + earned capital (Fill in)

INCOME STATEMENT

Revenue - expenses = net income