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 $$80,000$ into the business in exchange for common stock. The company also borrowed $$160,000$ from a local bank.

$2.$ Sefcik Company purchased equipment for $$152,000$ cash and inventory of $$64,000$ on credit $($the company still owes its suppliers for the inventory at month$$end$).$

$3.$ Sefcik Company sold inventory costing $$48,000$ for $$80,000$ cash.

$4.$ Sefcik Company paid $$19,200$ cash for wages owed employees for October work.

$5.$ Sefcik Company paid interest on the bank loan of $$1,600$ cash.

$6.$ Sefcik Company recorded $$800$ of depreciation expense related to its equipment.

$7.$ Sefcik Company paid a dividend of $$3,200$ cash.

a$.$ Record the effects of each transaction using the financial statement effects template.b$.$ Prepare the income statement and balance sheet at the end of October.

Note: Do not use a negative sign with your answers.