Analyzing Transactions Using the Financial Statement Effects Template Sefcik Company began operations on the first of October. Following are the transactions for its first month of business. 1. S. Sefcik launched Sefcik Company and invested $50,000 into the business in exchange for common stock. The company also borrowed $100,000 from a local bank. 2. Sefcik Company purchased equipment for $95,000 cash and inventory of $40,000 on credit (the company still owes its suppliers for the inventory at monthend). 3. Sefcik Company sold inventory costing $30,000 for $50,000 cash. 4. Sefcik Company paid $12,000 cash for wages owed employees for October work. 5. Sefcik Company paid interest on the bank loan of $1,000 cash. 6. Sefcik Company recorded $500 of depreciation expense related to its equipment. 7. Sefcik Company paid a dividend of $2,000 cash. a. Record the effects of each transaction using the financial statement effects template. Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Contrib. Capital + Earned Capital Revenues Expenses = Net Income 1. Answer 150000 Answer = Answer 100000 Answer Answer Answer Answer = Answer Answer Common Stock Answer Cash Answer Note Payable Answer N/A Answer N/A Answer N/A Answer N/A 2. Answer -95000 Answer 135000 = Answer 40000 Answer Answer Answer Answer = Answer Answer Inventory Answer Accounts Payable Answer Note Payable Answer N/A Answer N/A Answer N/A Answer N/A Answer Answer 3. Answer 50000 Answer -30000 = Answer Answer Answer 20000 Answer 50000 Answer 30000 = Answer 20000 Answer Inventory Answer Inventory Answer N/A Answer N/A Answer Retained Earnings Answer Sales Answer Cash 4. Answer -12000 Answer = Answer Answer Answer -12000 Answer Answer 12000 = Answer -12000 Answer Sales Answer Accounts Payable Answer N/A Answer N/A Answer Retained Earnings Answer N/A Answer Interest Expense 5. Answer -1000 Answer = Answer Answer Answer -1000 Answer Answer 1000 = Answer -1000 Answer Cash Answer Inventory Answer N/A Answer N/A Answer Retained Earnings Answer N/A Answer Wage Expense 6. Answer Answer -500 = Answer Answer Answer -500 Answer Answer 500 = Answer -500 Answer Depreciation Expense Answer Inventory Answer N/A Answer N/A Answer Retained Earnings Answer N/A Answer Wage Expense 7. Answer -2000 Answer = Answer Answer Answer -2000 Answer Answer = Answer Answer Wages Payable Answer Wage Expense Answer N/A Answer N/A Answer Retained Earnings Answer N/A Answer Depreciation Expense b. Prepare the income statement and balance sheet at the end of October. Note: Do not use a negative sign with your answers. Sefcik Co. Income Statement For Month of October Sales revenue Answer 30000 Total expenses Answer 12500 Net income Answer 42500 Sefcik Co. Retained Earnings Reconciliation For Month of October Retained earnings, October 1 Answer 12000 Net income Answer 42500 Dividends Answer 2,000 Retained earnings, October 31 Answer 54,700 Sefcik Co. Balance Sheet Oct 31 Cash Answer Liabilities Answer Noncash assets Answer Contributed capital Answer Retained earnings Answer Total equity Answer Total assets Answer Total liabilities and equity Answer Please answer all parts of the question.