Analyzing Transactions Using the Financial Statement Effects Template Sefcik Company began operations on the first of...
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Analyzing Transactions Using the Financial Statement Effects Template Sefcik Company began operations on the first of October. Following are the transactions for its first month of business. 1. S. Sefcik launched Sefcik Company and invested $50,000 into the business in exchange for common stock. The company also borrowed $100,000 from a local bank. 2. Sefcik Company purchased equipment for $95,000 cash and inventory of $40,000 on credit (the company still owes its suppliers for the inventory at month-end). 3. Sefcik Company sold inventory costing $30,000 for $50,000 cash. 4. Sefcik Company paid $12,000 cash for wages owed employees for October work. 5. Sefcik Company paid interest on the bank loan of $1,000 cash. 6. Sefcik Company recorded $500 of depreciation expense related to its equipment. 7. Sefcik Company paid a dividend of $2,000 cash. a. Record the effects of each transaction using the financial statement effects template. Transaction 1. 2. 3. 4. 5. 6. 7. Cash Asset + + + + + + + Noncash Assets ◆ ◆ + ◆ + → ◆ + = = Balance Sheet Liabilities + + ◆ ◆ + Contrib. Capital + ♦ + + + + + Earned Capital + ◆ + ◆ + = Revenues + ◆ + + + + Income Statement Expenses + ◆ → + = Net Income Analyzing Transactions Using the Financial Statement Effects Template Sefcik Company began operations on the first of October. Following are the transactions for its first month of business. 1. S. Sefcik launched Sefcik Company and invested $50,000 into the business in exchange for common stock. The company also borrowed $100,000 from a local bank. 2. Sefcik Company purchased equipment for $95,000 cash and inventory of $40,000 on credit (the company still owes its suppliers for the inventory at month-end). 3. Sefcik Company sold inventory costing $30,000 for $50,000 cash. 4. Sefcik Company paid $12,000 cash for wages owed employees for October work. 5. Sefcik Company paid interest on the bank loan of $1,000 cash. 6. Sefcik Company recorded $500 of depreciation expense related to its equipment. 7. Sefcik Company paid a dividend of $2,000 cash. a. Record the effects of each transaction using the financial statement effects template. Transaction 1. 2. 3. 4. 5. 6. 7. Cash Asset + + + + + + + Noncash Assets ◆ ◆ + ◆ + → ◆ + = = Balance Sheet Liabilities + + ◆ ◆ + Contrib. Capital + ♦ + + + + + Earned Capital + ◆ + ◆ + = Revenues + ◆ + + + + Income Statement Expenses + ◆ → + = Net Income
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Transacion 1 2 3 4 5 6 7 Cash Asset 150000 95000 50000 12000 1000 2... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
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