Record the following transactions for the month of August 2012 in the financial statements effects template below and record the journal entries.

Part 1:

A) Purchased $4,000 in inventory on credit.

B and C) Sold inventory purchased in (A) for $7,000 in cash. (Note: requires 2 entries)

D) Received and paid electricity bill for $800 related to August

E) Received $12,000 in cash for inventory to be delivered in September 2012.

Part 2: Record the journal entries for each transaction

Balance Sheet

Income Statement

Transaction

Cash

+

Noncash Assets

=

Liabilities

+

Contributed Capital

+

Earned Capital

Rev.

Exp.

=

Net

Asset

A)

B)

C)

D)

E)