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Sefcik Company began operations on the first of October. Following are the transactions for its first month of business. 1. 5. Sefcik launched Sefcik Company
Sefcik Company began operations on the first of October. Following are the transactions for its first month of business. 1. 5. Sefcik launched Sefcik Company and invested $40,000 into the business in exchange for common stock. The company also borrowed $80,000 from a local bank. 2. Sefcik Company purchased equipment for $76,000 cash and inventory of $32,000 on credit (the company still owes its suppliers for the inventory at month-end). 3. Sefcik Company sold inventory costing $24,000 for $40,000 cash. 4. Sefcik Company paid $9,600 cash for wages owed employees for October work. 5. Sefcik Company paid interest on the bank loan of $800 cash. 6. Sefcik Company recorded $400 of depreciation expense related to its equipment. 7. Sefcik Company paid a dividend of $1,600 cash. a. Record the effects of each transaction using the financial statement effects template. b. Prepare the income statement and balance sheet at the end of October. Note: Do not use a negative sign with your answers
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