Analyzing Transactions Using the Financial Statement Effects Template Analyzing Transactions Using the Financial Statement Effects Template

Hanlon Advertising Company began the current month with the following balance sheet.

Following are summary transactions that occurred during the current month.

The company purchased supplies for $$7,500$ cash; none were used this month.

Services of $$3,750$ were performed this month on credit.

Services were performed for $$15,000$ cash this month.

The company purchased advertising for $$12,000$ cash; the ads will run next month.

The company received $$1,800$ cash as partial payment on accounts receivable from transaction $2.$

The company paid $$5,100$ cash toward the accounts payable from the prior month.

Paid $$4,650$ cash toward this month's wages expenses.

The company declared and paid dividends of $$750$ cash.

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

Use negative signs with your answers, when appropriate. $($b$)$ Prepare the income statement for this month and the balance sheet as of month$-$end.

Do not use negative signs with any of your answers below.

Hanlon Advertising Company began the current month with the following balance sheet.

Cash $ $80,000$ Liabilities $ $70,000$

Noncash assets $135,000$ Contributed capital $110,000$

Earned capital $35,000$

Total assets $$215,000$ Total liabilities and equity $$215,000$

Following are summary transactions that occurred during the current month.

The company purchased supplies for $$7,500$ cash; none were used this month.

Services of $$3,750$ were performed this month on credit.

Services were performed for $$15,000$ cash this month.

The company purchased advertising for $$12,000$ cash; the ads will run next month.

The company received $$1,800$ cash as partial payment on accounts receivable from transaction $2.$

The company paid $$5,100$ cash toward the accounts payable from the prior month.

Paid $$4,650$ cash toward this month's wages expenses.

The company declared and paid dividends of $$750$ cash.

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

Use negative signs with your answers, when appropriate.

Balance Sheet

Transaction Cash

Asset $+$ Noncash

Assets $=$ Liabilities $+$ Contributed

Capital $+$ Earned

Capital

Beginning bal. Answer $1$

$80,000$

Answer $2$

$135,000$

Answer $3$

$70,000$

Answer $4$

$110,000$

Answer $5$

$35,000$

$1$ Answer $6$

$(7,500)$

Answer $7$

$7,500$

Answer $8$

$0$

Answer $9$

$0$

Answer $10$

$0$

$2$ Answer $11$

$0$

Answer $12$

$3,750$

Answer $13$

$0$

Answer $14$

$0$

Answer $15$

$3,750$

$3$ Answer $16$

$15,000$

Answer $17$

$0$

Answer $18$

$0$

Answer $19$

$0$

Answer $20$

$15,000$

$4$ Answer $21$

$(12,000)$

Answer $22$

$12,000$

Answer $23$

$0$

Answer $24$

$0$

Answer $25$

$0$

$5$ Answer $26$

$1,800$

Answer $27$

$(1,800)$

Answer $28$

$0$

Answer $29$

$0$

Answer $30$

$0$

$6$ Answer $31$

$(5,100)$

Answer $32$

$0$

Answer $33$

$(5,100)$

Answer $34$

$0$

Answer $35$

$0$

$7$ Answer $36$

$(4,650)$

Answer $37$

$0$

Answer $38$

$0$

Answer $39$

$0$

Answer $40$

$(4,650)$

$8$ Answer $41$

$(750)$

Answer $42$

$0$

Answer $43$

$0$

Answer $44$

$0$

Answer $45$

$750$

Ending balance Answer $46$

$66,800$

Answer $47$

$156,450$

Answer $48$

$64,900$

Answer $49$

$110,000$

Answer $50$

$49,850$

Income Statement

Revenue $-$ Expenses $=$ Net

Income

Answer $51$

$0$

Answer $52$

$0$

Answer $53$

$0$

Answer $54$

$0$

Answer $55$

$0$

Answer $56$

$0$

Answer $57$

$3,750$

Answer $58$

$0$

Answer $59$

$3,750$

Answer $60$

$15,000$

Answer $61$

$0$

Answer $62$

$15,000$

Answer $63$

$0$

Answer $64$

$0$

Answer $65$

$0$

Answer $66$

$0$

Answer $67$

$0$

Answer $68$

$0$

Answer $69$

$0$

Answer $70$

$0$

Answer $71$

$0$

Answer $72$

$0$

Answer $73$

$4,650$

Answer $74$

$(4,650)$

Answer $75$

$0$

Answer $76$

$0$

Answer $77$

$0$

Answer $78$

$18,750$

Answer $79$

$4,650$

Answer $80$

$14,100$

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

Do not use negative signs with any of your answers below.

Hanlon Advertising Company

Income Statement

Sales revenue Answer $81$

$18,750$

Total expenses Answer $82$

$4,650$

Net income Answer $83$

$14,100$

Hanlon Advertising Company

Retained Earnings Reconciliation

Retained earnings. beginning of month Answer $84$

$35,000$

Net income Answer $85$

$14,100$

Dividends Answer $86$

$750$

Retained earnings. end of month Answer $87$

$48,350$

Hanlon Advertising Company

Balance Sheet

Cash Answer $88$

$66,800$

Noncash assets Answer $89$

$156,450$

Total assets Answer $90$

$223,250$

Liabilities Answer $91$

$64,900$

Contributed capital Answer $92$

$110,000$

Retained earnings Answer $93$

$49,850$

Total equity Answer $94$

$159,850$

Total liabilities and equity Answer $95$

$0$