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 Transaction Cash Asset + Assets = Liabilities + Contrib. Capital + Earned Capital Revenues - Expenses Expenses - Net Income 1. Receive $20,000 cash in exchange for common stock. 20000 20000 2. Purchase $2,000 of inventory on credit. 2000 2000 3. Sell inventory for $3,000 on credit 3000 3000 3000 4. Record $2,000 for cost of inventory sold in 3. -2000 2000 -2000 5. Collect $3,000 cash from transaction 3. 3000 -3000 6. Acquire $5,000 of equipment by signing a note. 5000 5000 7. Pay wages of $1,000 in cash. 1000 1000 - 1000 8. Pay $5,000 on a note payable that came due. 5000 -5000 9. Pay $2,000 cash dividend. 2000 -2000 TOTALS 15000 + 5000 = 2000 + 18000 + 3000 3000 Confirm Assets = Liabilities + Stockholders' Equity Assets . Liabilities + Equity + Check