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Analyzing Transactions and Adjustments Using the Financial Statement Effects Template Werner Realty Company began the month with the following balance sheet. Cash $54,000 Liabilities $162.000 Noncash assets 405.000 Contributed capital 81,000 Earned capital 216,000 Total assets $459,000 Total liabilities and equity $459.000 Following are summary transactions that occurred during the current month. 1. The company purchased $10,800 of supplies on credit. 2. The company received $14,400 cash from a new customer for services to be performed next month. 3. The company paid $10,800 cash to cover office rent for two months (the current month and the next). 4. The company billed clients for 545,000 of work performed. 5. The company paid employees $10,800 cash for work performed. 6. The company collected $45,000 cash from accounts receivable in transaction 4. 7. The company recorded 57,200 depreciation on its equipment. 8. At month-end, $3,600 of supplies purchased in transaction 1 are still available; no supplies were available when the month began. a. Record the effects of each transaction using the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Income Statement Expenses Transaction Cash Asset + Noncash Assets + Contrib. Capital Earned Capital Revenues = Net Income . 2 . 3 . 4 5. 6. 7 8 b. Prepare the income statement for this month, the retained earnings reconciliation, and the balance sheet as of month-end. Note: Do not use a negatives sign with your answers. Werner Realty Company Income Statement For Current Month Sales revenue s Total expenses Net income $ Werner Realty Company Retained Earnings Reconciliation For Current Month Retained earnings, beginning of months Add: Net income Less: Dividends Retained earnings, end of month S Werner Realty Company Balance Sheet Current Month-End Cash S Liabilities S Noncash assets Contributed capital Retained earnings Total equity Total assets S Total liabilities and equity S