Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template. 1. Shareholders contribute $5,000 cash to the business in exchange for common stock. 2. Employees earn $250 in wages that have not been paid at period-end. 3. Inventory of $1,500 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $2,250 on credit. 5. The company collected the $2,250 owed to it per transaction 4 . 6. Equipment is purchased for $2,500 cash. 7. Depreciation of $500 is recorded on the equipment from transaction 6 . 9. The company paid $5,000 cash toward the principal on a note payable; also, $250 cash is paid to cover this note's interest expense for the period. 10 . The company receives $4,000 cash in advance for services to be delivered next period. Use negative signs with your answers, when appropriate. Hint: For transaction 4, enter net effect amount for balance sheet answers. Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template. 1. Shareholders contribute $5,000 cash to the business in exchange for common stock. 2. Employees earn $250 in wages that have not been paid at period-end. 3. Inventory of $1,500 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $2,250 on credit. 5. The company collected the $2,250 owed to it per transaction 4 . 6. Equipment is purchased for $2,500 cash. 7. Depreciation of $500 is recorded on the equipment from transaction 6 . 9. The company paid $5,000 cash toward the principal on a note payable; also, $250 cash is paid to cover this note's interest expense for the period. 10 . The company receives $4,000 cash in advance for services to be delivered next period. Use negative signs with your answers, when appropriate. Hint: For transaction 4, enter net effect amount for balance sheet answers