Analyzing Transactions Using the Financial Statement Effects Template 

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

Cash$ 80,000Liabilities$ 70,000Noncash assets135,000Contributed capital110,000 Earned capital35,000Total assets$215,000Total liabilities and equity$215,000

Following are summary transactions that occurred during the current month.

1. The company purchased supplies for $12,500 cash; none were used this month.
2. Services of $6,250 were performed this month on credit.
3. Services were performed for $25,000 cash this month.
4. The company purchased advertising for $20,000 cash; the ads will run next month.
5. The company received $3,000 cash as partial payment on accounts receivable from transaction 2.
6. The company paid $8,500 cash toward the accounts payable from the prior month.
7. Paid $7,750 cash toward this month's wages expenses.
8. The company declared and paid dividends of $1,250 cash. 

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

 Use negative signs with your answers, when appropriate