Analyzing Transactions Using the Financial Statement Effects Template 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 $5,000 cash; none were used this month.

Services of $2,500 were performed this month on credit.

Services were performed for $10,000 cash this month.

The company purchased advertising for $8,000 cash; the ads will run next month.

The company received $1,200 cash as partial payment on accounts receivable from transaction 2.

The company paid $3,400 cash toward the accounts payable balance reported at the beginning of the month.

Paid $3,500 cash toward this month's wages expenses.

The company declared and paid dividends of $500 cash.

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

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Beginning bal.	Answer		Answer		Answer		Answer		Answer
1	Answer		Answer		Answer		Answer		Answer
2	Answer		Answer		Answer		Answer		Answer
3	Answer		Answer		Answer		Answer		Answer
4	Answer		Answer		Answer		Answer		Answer
5	Answer		Answer		Answer		Answer		Answer
6	Answer		Answer		Answer		Answer		Answer
7	Answer		Answer		Answer		Answer		Answer
8	Answer		Answer		Answer		Answer		Answer
Ending balance	Answer		Answer		Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer		Answer		Answer
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(b) Prepare the income statement for this month and the balance sheet as of month-end.

Hanlon Advertising Company Income Statement
Sales revenue	$Answer
Total expenses (enter as a positive)	Answer
Net income	$Answer

Hanlon Advertising Company Retained Earnings Reconciliation
	Common Stock
Retained earnings. beginning of month	$Answer
Add: Net income	Answer
Less: Dividends (enter as a negative)	Answer
Retained earnings. end of month	$Answer

Hanlon Advertising Company

Balance Sheet

Cash	$Answer
Noncash assets	Answer
Total assets	$Answer

Liabilities	$Answer
Contributed capital	Answer
Retained earnings	Answer
Total equity	Answer
Total liabilities and equity	$Answer