Prepare financial effects template entries to record the transactions:

August $1$st Dwayne Wayne, the owner, invested $$75,000$ cash along with office equipment

valued at $$11,000$ in the company in exchange for common stock.

Cash $+75000|$Office Equipment $+11000|$Common Stock $+86000$

Dwayne Wayne invested $$75000$ cash and office equipment valued at $$11000$ in the company in exchange for common stock, increasing both asset accounts and the equity account.

August $2$nd Hillman Enterprises purchased land valued at $$7,500$ and a building valued at

$$40,000.$ The purchase is paid with $$15,000$ cash and a note payable for $$32,500.$

Land $+7500|$Building $+40000|$Cash $-15000|$Notes Payable $+32500$

Explanation:

Hillman Enterprises purchased land and a building for a total of $$47500,$ paying $$15000$ in cash and taking on a note payable for $$32500,$ increasing assets and liabilities.

August $3$rd Hillman completed $$4,200$ of services for Ron Johnson, who must pay within $30$ days.

Accounts Receivable $+4200|$Service Revenue $+4200$

Explanation:

Hillman completed services for $$4200$ on account, increasing both accounts receivable and service revenue.

August $4$th Hillman Enterprises paid $$1,000$ cash salary to an assistant.

Salaries Expense $+1000|$Cash $-1000$

Explanation:

Hillman Enterprises paid a $$1000$ cash salary to an assistant, increasing an expense account and decreasing cash.

August $6$th Hillman Enterprises received a cash payment of $$10,000$ from Howard University for a technology services project expected to be started and completed in September.

Cash $+10000|$Unearned Revenue $+10000$

Explanation:

Hillman Enterprises received $$10000$ in cash for services to be performed in the future, increasing cash and creating a liability for unearned revenue.

August $9$th Hillman Enterprises purchased $$5,000$ of office supplies on credit.

Office Supplies $+5000|$Accounts Payable $+5000$

Explanation:

Hillman Enterprises purchased office supplies on credit, increasing both office supplies and accounts payable.

August $11$th Hillman Enterprise paid $$540$ cash for this month$$s utilities.

Utilities Expense $+540|$Cash $-540$

Explanation:

Hillman Enterprises paid $$540$ for utilities, increasing utilities expense and decreasing cash.

August $18$th Hillman Enterprises received the balance due from Ron Johnson for the invoice

dated August $3$rd$.$

Cash $+4200|$Accounts Receivable $-4200$

Explanation:

Hillman Enterprises received the balance due from Ron Johnson for services rendered, increasing cash and decreasing accounts receivable.

August $23$rd Hillman Enterprises made a partial cash payment of $$2,500$ for the credit purchase on August $9$th$.$

Accounts Payable $-2500|$Cash $-2500$

Explanation:

Hillman Enterprises made a partial payment for the office supplies purchased on credit, decreasing both accounts payable and cash.

August $29$th Hillman Enterprises paid $$8,400$ cash, in advance, for six months$$ rent for warehouse space.

Prepaid Rent $+8400|$Cash $-8400$

Explanation:

You paid $$8400$ in cash for six months' rent in advance, which increases your Prepaid Rent asset and decreases your Cash asset.

August $30$th Hillman Enterprises paid $$4,000$ cash dividends.

Dividends $+4000|$Cash $-4000$

Explanation:

You paid $$4000$ in cash dividends to shareholders, which increases your Dividends $($reduces retained earnings$)$ and decreases your Cash asset.

January $1$st Dr$.$ Anderson invested $$75,000$ cash in the company in exchange for common stock.

Cash $+75000|$Common Stock $+75000$

Explanation:

Dr$.$ Anderson invested $$75000$ in cash into the company for common stock, which increases your Cash asset and your Common Stock equity.

January $2$nd TechWorld purchased $$55,600$ of merchandise from Power Electronics on credit.

Inventory $+55600|$Accounts Payable $+55600$

Explanation:

You purchased $$55600$ of merchandise on credit from Power Electronics, which increases your Inventory asset and your Accounts Payable liability.

January $3$rd TechWorld sold $$20,000$ worth of merchandise to Tim Hill on credit. Cost of the merchandise is $$16,000.$

Accounts Receivable $+20000|$Sales Revenue $+20000|$Cost of Goods Sold $+16000|$Inventory $-16000$

Explanation:

You sold $$20000$ worth of merchandise to Tim Hill on credit, which increases your Accounts Receivable and Sales Revenue, and also records the cost of the sold merchandise by increasing Cost of Goods Sold and decreasing Inventory.

January $6$th TechWorld received a cash payment of $$10,000$ from Howard University for a technology services project expected to be started and completed in February.

Cash $+10000|$Unearned Revenue $+10000$

Explanation:

You received a $$10000$ cash payment from Howard University for a project to be completed in the future, which increases your Cash asset and creates an Unearned Revenue

Show how it will effect the balance sheet and income statement