Analyzing Transactions Using the Financial Statement Effects Template Record the effect of each of the following independent transactions using the financial statement effects template provided. Confirm that Assets = Liabilities + Equity. Remember to use negative signs with your answers, when appropriate. Balance Sheet Income Statement Noncash Cash Asset + Assets = Liabilities Revenues Net Income + Contrib. Capital + Earned Capital 64,000 0 Expenses 0 64,000 0 0 O 0 0 6,400 0 0 0 0 0 0 0 0 0 x 9,600 0 9,600 (6,400) 0 6,400 9,600 (6,400) (9,600) 16,000 O 0 0 x o Transaction 1. Receive $64,000 cash in exchange for common stock. 2. Purchase $6,400 of inventory on credit. 3. Sell inventory for $9,600 on credit. 4. Record $6,400 for cost of inventory sold in 3. 5. Collect $9,600 cash from transaction 3. 6. Acquire $16,000 of equipment by signing a note. 7. Pay wages of $3,200 in cash. 8. Pay $16,000 on a note payable that came due. 9. Pay $6,400 cash dividend. TOTALS 6,400 9,600 0 0 o O 0 O 16,000 0 0 0 O O O 0 0 0 0 0 0 x O 3,200 (3,200) X > 0 (16,000) 0 0 O 0 0 0 3,200 x 16,000 x 6,400 x 99,200 X + 0 0 (6,400) * 0 x 0 0 0 0 x 0 x + 0 X + 0 x II 0 x 0 x 0 = Confirm Assets = Liabilities + Stockholders' Equity = Assets = Liabilities Equity 0 x 0 x = 0 X +