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 Contributed 135,000 capital 110,000 Earned capital 35,000 Total liabilities Total assets $215,000 and equity $215,000 assets Support Following are summary transactions that occurred during the current month. 1. The company purchased supplies for $2,500 cash; none were used this month. 2. Services of $1,250 were performed this month on credit. 3. Services were performed for $5,000 cash this month. 4. The company purchased advertising for $4,000 cash; the ads will run next month. 5. The company received $600 cash as partial payment on accounts receivable from transaction 2 6. The company paid $1,700 cash toward the accounts payable from the prior month. Daid teach toward thic moothie 6. The company paid $1,700 cash toward the accounts payable from the prior month. 7. Paid $1,550 cash toward this month's wages expenses. 8. The company declared and paid dividends of $250 cash. (a) Record the effects of each transaction using the financial statement effects template. Use negative signs with your answers, when appropriate. Support Balance Sheet Cash Asset Noncash Assets Contributed Capital Earned + Capital + = Liabilities + Transaction Beginning bal. 1 2 3 4 5 6 7 8 Ending balance (b) Prepare the income statement for this month and the balance sheet as of month-e Do not use negative signs with any of your answers below. nce Sheet Income Statement Contributed Capital Earned + Capital abilities + Revenue - Expenses = Net Income income statement for this month and the balance sheet as of month-end. Do not use negative signs with any of your answers below. Hanlon Advertising Company Retained Earnings Reconciliation Retained earnings, beginning of month $ Net income Dividends Retained earnings. end of month $ Hanlon Advertising Company Balance Sheet Liabilities Contributed capital $ Retained earnings Total equity $ Total liabilities and equity $ Cash Noncash assets Total assets