Analyzing Transactions Using the financial statement effect template.

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

Cash.........................................$ 30,000 Liabilities................................$90,000

Noncash assets.....................$ 225,000 contributed capital ................ 45,000

Total asset $255,000 Earned capital ...................120,000

Total Liabilities and equity......$255,000

Following are summary transaction 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 service to be performed next month

3.The company $6000 cash to cover office rent for the month(the current month and the next)

4.The company billed client for $25,000 of work performed.

5.The company paid employee $6,000 cash for work performed

6.The company collected $25,000 cash from account receivable in transaction 4

7. The company recorded $4,000 depreciation on its equipment

8.At month-end $2,000 of supplies purchase in transaction 1 are still available: no supplies were available when the month began.

Required.

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

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