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.

Shareholders contribute $$20,000$ cash to the business in exchange for common stock.

Employees earn $$1,000$ in wages that have not been paid at period$-$end.

Inventory of $$6,000$ is purchased on credit.

The inventory purchased in transaction $3$ is sold for $$9,000$ on credit.

The company collected the $$9,000$ owed to it per transaction $4.$

Equipment is purchased for $$10,000$ cash.

Depreciation of $$2,000$ is recorded on the equipment from transaction $6.$

The Supplies account had a $$3,800$ balance at the beginning of this period; a physical count at period$-$end shows that $$1,600$ of supplies are still available. No supplies were purchased during this period.

The company paid $$20,000$ cash toward the principal on a note payable; also, $$1,000$ cash is paid to cover this note's interest expense for the period.

The company receives $$16,000$ cash in advance for services to be delivgred next period.

Use negative signs with your answers, when appropriate.

Hint: For transaction $4,$ enter the net effect for balance sheet answers.