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. 1. The company purchased supplies for $5,000 cash; none were used this month. 2. Services of $2,500 were performed this month on credit. 3. Services were performed for $10,000 cash this month. 4. The company purchased advertising for $8,000 cash; the ads will run next month. 5. The company received $1,200 cash as partial payment on accounts receivable from transaction 2. 6. The company paid $3,400 cash toward the accounts payable balance reported at the beginning of the month. 7. Paid $3,500 cash toward this month's wages expenses. 8. The company declared and paid dividends of $500 cash. (a) Record the effects of each transaction using the financial statement effects template. Use negative signs with your answers, when appropriate. 0 x Hanlon Advertising Company Retained Earnings Reconciliation Retained earnings. beginning of month $ Add: Net income Less: Dividends Retained earnings. end of month $ 0 x 0 x 0 X 0X Hanlon Advertising Company Balance Sheet Liabilities $ Contributed capital 0 % Retained earnings 0 % Total equity 0 % Total liabilities and equity $ 0X Cash $ 0 x Noncash assets 0 x Total assets $ $ 0 x Check Balance Sheet Income Statement Cash Asset 80,000 + Transaction Beginning bal 1 + Noncash Assets 135.000 5.000 2.500 0 Earned Capital 35.000 Revenue Expenses 0 Net Income 0 Liabilities 70,000 0 0 0 O 0 2 3 Contributed Capital 110,000 0 0 0 0 0 2.500 10.000 0 0 0 2.500 10.000 0 0 O 2.500 10.000 4 Ov (5,000) 0 10,000 (8,000) 1.200 (3,400) (3.500) (500) 70.800 5 O 6 0 8.000 (1.2001 0v 0 Ov 7 8 O O (3.400) 0 0 66,600 0 O O 110,000 0 0 (3.500) (500) 43.500 O 0 0 0 0 3.500 0 3.500 Ending balance (3,500) 0 9.000 149.300 12,500