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

Transaction Cash Asset $+$

Noncash

Assets

$=$ Liabilities $+$ Contrib. Capital $+$ Earned Capital Revenues $-$ Expenses $=$ Net Income

$1.$ Receive $$40,000$ cash in exchange for common stock. Answer $1$

$40000$

Answer $2$

$0$

Answer $3$

$0$

Answer $4$

$40000$

Answer $5$

$0$

Answer $6$

$0$

Answer $7$

$0$

Answer $8$

$0$

$2.$ Purchase $$4,000$ of inventory on credit. Answer $9$

$0$

Answer $10$

$4000$

Answer $11$

$4000$

Answer $12$

$0$

Answer $13$

$0$

Answer $14$

$0$

Answer $15$

$0$

Answer $16$

$0$

$3.$ Sell inventory for $$6,000$ on credit. Answer $17$

$0$

Answer $18$

$6000$

Answer $19$

$0$

Answer $20$

$0$

Answer $21$

$0$

Answer $22$

$6000$

Answer $23$

$0$

Answer $24$

$6000$

$4.$ Record $$4,000$ for cost of inventory sold in $3.$ Answer $25$

$0$

Answer $26$

$-4000$

Answer $27$

$0$

Answer $28$

$0$

Answer $29$

$-4000$

Answer $30$

$0$

Answer $31$

$0$

Answer $32$

$-4000$

$5.$ Collect $$6,000$ cash from transaction $3.$ Answer $33$

$6000$

Answer $34$

$0$

Answer $35$

$0$

Answer $36$

$0$

Answer $37$

$0$

Answer $38$

$0$

Answer $39$

$0$

Answer $40$

$0$

$6.$ Acquire $$10,000$ of equipment by signing a note. Answer $41$

$0$

Answer $42$

$10000$

Answer $43$

$10000$

Answer $44$

$0$

Answer $45$

$0$

Answer $46$

$0$

Answer $47$

$-2000$

Answer $48$

$0$

$7.$ Pay wages of $$2,000$ in cash. Answer $49$

$-2000$

Answer $50$

$0$

Answer $51$

$0$

Answer $52$

$0$

Answer $53$

$0$

Answer $54$

$0$

Answer $55$

$0$

Answer $56$

$-2000$

$8.$ Pay $$10,000$ on a note payable that came due. Answer $57$

$-10000$

Answer $58$

$0$

Answer $59$

$-10000$

Answer $60$

$0$

Answer $61$

$0$

Answer $62$

$0$

Answer $63$

$-4000$

Answer $64$

$0$

$9.$ Pay $$4,000$ cash dividend. Answer $65$

$-4000$

Answer $66$

$0$

Answer $67$

$0$

Answer $68$

$0$

Answer $69$

$0$

Answer $70$

$0$

Answer $71$

$0$

Answer $72$

$-4000$

TOTALS Answer $73$

$30,000$

$+$ Answer $74$

$16,000$

$=$ Answer $75$

$46,000$

$+$ Answer $76$

$40,000$

$+$ Answer $77$

$(4,000)$

Answer $78$

$6,000$

$-$ Answer $79$

$(6,000)$

$=$ Answer $80$

$82,000$

Confirm Assets $=$ Liabilities $+$ Stockholders' Equity

Assets $=$ Liabilities $+$ Equity

Answer $81$

$0$

$=$ Answer $82$

$0$

$+$ Answer $83$

$0$