Werner Realty Company began the month with the following balance sheet.

Following are summary transactions that occurred during the current month.
1. The company purchased $ 6,000 of supplies on credit.
2. The company received $ 8,000 cash from a new customer for services to be performed next month.
3. The company paid $ 6,000 cash to cover office rent for two months (the current month and the next).
4. The company billed clients for $ 25,000 of work performed.
5. The company paid employees $ 6,000 cash for work performed.
6. The company collected $ 25,000 cash from accounts receivable in transaction 4.
7. The company recorded $ 4,000 depreciation on its equipment.
8. At month-end, $ 2,000 of supplies purchased in transaction 1 are still available; no supplies were available when the month began.
Required

a. Record the effects of each transaction using the financial statement effects template.

b. Prepare the income statement for this month and the balance sheet as of month-end.

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Cash..... Noncash assets Total assets.. Liabilities..... Contributed capital. Earned capital $255,000 Total liabilities and equity.. $ 30,000 225,000 ... $ 90,000 45,000 120,000 $255,000