Following are selected transactions of ABC Company. Record the effects of these transactions using the financial statement effects template.

1.Shareholders contributed $1,000,000 cash to the business in exchange for common stock.

2.The company obtained a bank loan of $50,000.

3.Purchased $5,000 equipment and paid cash.

4.Purchased inventory at the cost of $3,000 by paying $1,000 cash and receiving short-term credit from the remainder of the supplier.

5.The company recorded and paid salaries and wages of $4,500.

(Supposed to be a chart below)

Balance Sheet

Cash Asset + Noncash Asset = Liabilities + Contributed Capital + Retained Earnings (Or Earned Capital)

Income Statement

Revenue - Expense=Net Income

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