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Analyzing Transactions Using the Financial Statement Effects Template and preparing an Income Statement On December 1, 2015, R. Lambert formed Lambert Services, which provides career and vocational counseling services to graduating college students. The following transactions took place during December, and company accounts include the following: Cash, Accounts Receivable, Land, Accounts Payable, Notes Payable, Common Stock, Retained Earnings, Counseling Services Revenue, Rent Expense, Advertising Expense, Interest Expense, Salary Expense, and Utilities Expense. (1) Raised $42,000 cash through common stock issuance (2) Paid $4,500 cash for December rent on its furnished office space. (3) Received $3,000 invoice for December advertising expenses. (4) Borrowed $90,000 cash from bank and signed note payable for that amount. (5) Received $7,200 cash for counseling services rendered. (6) Billed clients $40,800 for counseling services rendered. (7) Paid $13,200 cash for secretary salary. (8) Paid $2,220 cash for December utilities. (9) Declared and paid a $5,400 cash dividend. (10) Purchased land for $78,000 cash to use for its own facilities. (11) Paid $600 cash to bank as December interest expense on note payable. Required a. Report the effects for each of the separate transactions 1 through 11 using the financial statement effects template. Total all columns and prove that (1) assets equal liabilities plus equity at December 31, and (2) revenues less expenses equal net income for December. Note: Use a negative sign with your answers, when appropriate. Balance Sheet Income Statement Noncash Assets + Cash Asset + 0 + Revenue Liabilities + 0 + Earned Capital 0 Contributed Capital 0 + 0 + Expenses = Net Income 0 = 0 0 = Transaction (1) ) (2) (3) 0 0 + 0 = 0 + 0 0 0 = 0 0 + 0 = 0 + 0 + 0 0 0 = 0 0 + 0 = 0 + 0 + 0 0 0 = 0 (4) (5) 0 + 0 = 0 + 0 + 0 0 0 = 0 (6) Issued common stock $42,000. Paid rent $4,500. Received $3,000 invoice for advertisting expense. Borrowed $90,000 cash from bank. $7,200 cash received for services. Billed clients $40,800 for services. Paid $13,200 cash for salary. Paid $2,220 cash for utilities. Paid $5,400 cash dividend. Acquired land for $78,000. Paid $600 interest in cash. 0 + 0 = 0 + 0 + 0 0 0 = 0 0 0 + 0 = 0 + 0 + 0 0 0 = 0 0 + 0 = 0 + 0 + 0 0 0 = 0 (7) (8) (9) (10) (11) 0 + 0 = = 0 + 0 + 0 0 0 = 0 0 + 0 = 0 + 0 + 0 0 0 = 0 0 + 0 = 0 + 0 + 0 0 0 = 0 TOTALS $ 0 + $ 0 = $ 0 + $ 0 + $ 0 $ 0 $ 0 = $ 0 b. Prepare an income statement for the month of December Note: Do not use negative signs with any of your answers. Lambert Services Income Statement For the Month of December 2015 $ 0 $ 0 Expenses Rent Expense Advertising Expense Salary Expense Utilities Expense 0 0 0 0 0 0 Total Expenses Net Income $ 0 Please answer all parts of the question. Cash Accounts Receivable Land Accounts Payable Notes Payable Common Stock Retained Earnings Counseling Services Revenue Rent Expense Advertising Expense Interest Expense Salary Expense Utilities Expense