Need help with the following questions: Analyzing Transactions Using the Financial Statement Effects Template and Preparing Financial Statements Schrand Aerobics, Inc., rents studio space (including a sound system) and specializes in offering aerobics classes. On January 1, 2013, its beginning account balances are as follows: Cash, $2,500; Accounts Receivable, $2,600; Equipment, $0; Notes Payable, $1,250; Accounts Payable, $500; Common Stock, $2,750; Retained Earnings, $600; Services Revenue, $0; Rent Expense, $0; Advertising Expense, $0; Wages Expense, $0; Utilities Expense, $0; Interest Expense, $0. The following transactions occurred during January.

Required (1) Paid $300 cash toward accounts payable (2) Paid $1,800 cash for January rent (3) Billed clients $5,750 for January classes (4) Received $250 invoice from supplier for T-shirts given to January class members as an advertising promotion (5) Collected $5,000 cash from clients previously billed for services rendered (6) Paid $1,200 cash for employee wages (7) Received $340 invoice for January utilities expense (8) Paid $10 cash to bank as January interest on notes payable (9) Declared and paid $450 cash dividend to stockholders (10) Paid $2,000 cash on January 31 to purchase sound equipment to replace the rental system (a) Using the financial statement effects template, enter January 1 beginning amounts in the appropriate columns of the first row. (Hint: Beginning balances for columns can include amounts from more than one account.) (b) Report the effects for each of the separate transactions 1 through 10 in the financial statement effects template set up in part (a). Total all columns and prove that (1) assets equal liabilities plus equity at January 31, and (2) revenues less expenses equal net income for January.

Beginning Balances	$Answer	+	$Answer	=	$Answer	+	$Answer	+	$Answer
(1)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(2)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(3)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(4)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(5)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(6)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(7)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(8)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(9)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
(10)	Answer	+	Answer	=	Answer	+	Answer	+	Answer
TOTALS	Answer	+	Answer	=	Answer	+	Answer	+	Answer

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(c) Prepare its income statement for January 2013.

Answer

		$Answer
Expenses
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	$Answer
Advertising Expense	Answer
Wages Expense	Answer
Utilities Expense	Answer
Interest Expense	Answer
Total Expenses		Answer
Net Income		$Answer

(d) Prepare its statement of stockholders' equity for January 2013.

(Enter dividends as a negative number.)

Balance at January 1, 2013	$Answer	$Answer	$Answer
Stock Issuance	Answer	Answer	Answer
Dividends	Answer	Answer	Answer
Net Income	Answer	Answer	Answer
Balance at January 31, 2013	$Answer	$Answer	$Answer

(e) Prepare its balance sheet at January 31, 2013.

Assets		Liabilites
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$Answer

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	$Answer
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	Answer	Note payable	Answer
Answer

	Answer	Total liabilities	Answer
		Stockholders' Equity
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	Answer
Total Assets	$Answer	Total Liabilities and Equity	$ Answer