E3-44. Analyzing Transactions

Using the Financial Statement Effects Template Record the effect of each of the following transactions for Hora Company using the financial statement effects template.

a. Wages of $500 are earned by employees but not yet paid.

b. $2,000 of inventory is purchased on credit.

c. Inventory purchased in transaction b is sold for $4,000 on credit.

d. Collected $3,000 cash from transaction c.

e. Equipment is acquired for $5,000 cash.

f. Recorded $1,000 depreciation expense on equipment from transaction e.

g. Paid $10,000 cash toward a note payable that came due. h. Paid $2,000 cash for interest on borrowings.