Finish attempt... Question 7 Answer saved Marked out of 15.00 Flag question Analyzing Transactions Using the Financial Statement Effects Template Hanlon Advertising Company began the current month with the following balance sheet. Cash $80,000 Noncash assets 135,000 Liabilities $70,000 Contributed capital 110,000 Earned capital 35,000 Total assets $215,000 Total liabilities and equity $215,000 Following are summary transactions that occurred during the current month. 1. The company purchased supplies for $5,000 cash; none were used this month. 2. Services of $2,500 were performed this month on credit. 3. Services were performed for $10,000 cash this month. 4. The company purchased advertising for $8,000 cash; the ads will run next month. 5. The company received $1,200 cash as partial payment on accounts receivable from transaction 2. 6. The company paid $3,400 cash toward the accounts payable from the prior month. 7. Paid $3,100 cash toward this month's wages expenses. 8. The company declared and paid dividends of $500 cash. (a) Record the effects of each transaction using the financial statement effects template. Use negative signs with your answers, when appropriate. Balance Sheet Cash Transaction Asset + Noncash Assets Contributed Earned = Liabilities + Capital + Capital Revenue Income Statement Expenses = Net Income (a) Record the effects of each transaction using the financial statement effects template. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Cash Transaction Asset + Noncash Assets Contributed Earned = Liabilities + Capital Capital Revenue Expenses = Net Income Beginning bal. 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 8 Ending balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (b) Prepare the income statement for this month and the balance sheet as of month-end. Do not use negative signs with any of your answers below. Hanlon Advertising Company Income Statement Sales revenue $ 0 Total expenses 0 Net income $ 0 Do not use negative signs with any of your answers below. Hanlon Advertising Company Retained Earnings Reconciliation Retained earnings, beginning of month $ Net income Dividends Retained earnings end of month 0 0 0 Do not use negative signs with any of your answers below. Hanlon Advertising Company Income Statement Sales revenue $ Total expenses Net income 0 0 $ 0 Do not use negative signs with any of your answers below. Hanlon Advertising Company Retained Earnings Reconciliation Retained earnings. beginning of month $ 0 Net income 0 Dividends 0 Retained earnings. end of month $ 0 Hanlon Advertising Company Balance Sheet Liabilities $ 0 Contributed capital 0 Cash O Retained earnings 0 Noncash assets 0 Total equity 0 Total assets $ 0 Total liabilities and equity $ 0 < Previous Save Answers Next >