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 $20,000 cash to the business in exchange for common stock.
2. Employees earn $1,000 in wages that have not been paid at period-end.
3. Inventory of $6,000 is purchased on credit.
4. The inventory purchased in transaction 3 is sold for $9,000 on credit.
5. The company collected the $9,000 owed to it per transaction 4.
6. Equipment is purchased for $10,000 cash.
7. Depreciation of $2,000 is recorded on the equipment from transaction 6.
8. 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.
9. 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.
10. The company receives $16,000 cash in advance for services to be delivered next period.

Use negative signs with your answers, when appropriate.

Hint:For transaction 4, enter the net effect forbalance sheet answers.