Each of the remaining sheets in this file contains 1) a description of a transaction and 2) a partially completed balance sheet, income statement, and statement of retained earnings. For each transaction, show how the financial statements would change. Each transaction is independent, so you can work through the file in any order you like. All changes are entered in the blue cells on the statements. Each statement has two columns. Values in the first column are selected from a drop-down menu. For a given transaction, there may be several (or even many) blue cells that do not need to be changed. Instructions Trans #1 Trans #2 Trans #3 Trans 84 Trans #5 Trans #6 Trans 7 EADY R e 07 *] Mege London formatas Coboard G Font Formatting Table Alignment Number D EG H Income Statement Statement of Financial Position ASSETS Current assets: Transactions Paid employees $2,000 for wages earned up to the end of last week. Gross profit Operating expenses: Total current assets Total operating expenses Earnings from operations Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net Income Total current liabilities 16 Total liabilities Shareholders' Equity 38 10 20 Statement of Retained Emines Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 26 20 29 31 36 Trani o Ta Trans Trani Tran Instructions Tra T READY OS D EFG Income Statement Statement of Financial Position ASSETS Current assets Transaction Received $400 from customers who had purchased inventory on credit last month. Gross profit Operating expenses Total current assets Total assets LABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities 35 16 17 Total liabilities Shareholders' Equity Statement of Retained amnings Beginning balance 19 30 20 Total shareholders' equity Total liabilities and shareholders equity Ending balance 20 22 28 29 30 H 30 1 TI Trans T3 KS Q e D EFG UK Income Statement Statement of Financial Position ASSETS Current assets Transaction Paid $100 forin advertisement in the local newspaper Gross profit Operating expenses Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations 10 11 12 13 14 Earnings before income taxes Net income Total current liabilities 15 16 17 Totallibilities Shareholders' Equity 18 19 20 23 Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders equity Ending balance 24 25 27 20 29 30 1 27 34 35 36 37 tra Trans e OS Aliant Foming The 5 A C D EFG Statement of Financial Position ASSETS Current assets Income Statement Transaction Purchased $1,200 of irwentory on credit Gross profit Operating expenses: Total current assets 9 50 Total assets LIABILITIES AND SHARDIOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes 71 12 12 14 15 Net income Total current liabilities 16 17 13 19 Total abilities Shareholders' Equity Statement of Retained Earnings Beginning balance Total shareholders equity Total abilities and shareholders' equity Ending balance 24 26 27 28 220 10 31 13 35 38 Ted Trans struction ELADE e Alignment be X fx A D ETO Income Statement Statement of Financial Position ASSETS Current assets Transaction Sold inventory to customers for $900. The inventory cost the business $400. The customers paid cash at the time of sale Gross profit Operating expenses Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities 7 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance 75 20 21 22 Total Shareholders' equity Total liabilities and shareholders equity Ending balance 24 25 16 27 28 29 30 11 32 36 Then Trans truction Trans REAL e OS