Analyzing Transactions Using the Financial Statement Effects Template

Record the effect of each of the following independent transactions using the fnancial statement effects template provided. Confrm that Assets = Liabilities + Equity.

using the information above,

Prepare journal entries for each of the transactions 1 through 9.

Set up T-accounts for each of the accounts used in part a and post the journal entries to those

T-accounts. (The T-accounts will not have opening balances.)

Balance Sheet Income Statement CashNoncash Asset Liabil- Contrib Capital EamedRevenues -Expenses Income Capital Net Transaction Assets ities (1)Receive $20,000 cash in exchange for common stock (2)Purchase $2,000 of (3)Sell inventory (4)Record $2,000 for cost (5)Collect $3,000 cash (6)Acquire $5,000 of inventory on credit. for $3,000 on credit. of inventory sold in 3 from transaction 3. equipment by signing a note (7)Pay wages of $1,000 in (8)Pay $5,000 on a note (9)Pay $2,000 cash. payable that came due cash dividend Totals