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.

Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.

Each entry needs to be labeled with one of the following:

  
 

Transcribed Image Text:

Transaction a. b. C. d. e. f. g. h. N/A N/A N/A Cash Asset 0 + 0 + 0 + 0 ♦ Please answer all parts of the question. 0 ◆ 0 + 0 0 + + N/A Noncash Assets Inventory Accounts Receivable 0 = + 2000 = ◆ 4000 = + 0 ◆ 0 = → 0 = ♦ 0 = → 0 = ◆ 0 = + Balance Sheet Liabilities Wages Payable N/A Accounts Payable 500 + 2000 + 0 + 0 0 ♦ 0 + 0 0 N/A N/A N/A Contrib. Capital 0 + 0 + + 0 → 0 0 + 0 + 0 → 0 + N/A N/A N/A Earned Capital 0 > 0 ◆ N/A 0 $ → 0 → 0 ◆ 0 → 0 ◆ N/A 0 Revenues 0 + 0 + 4000 + 0 → 0 → 0 + 0 → 0 V Income Statement Expenses Wages Expense N/A 500 = + ♦ + 0 = 0 = + → → 0 = ◆ 0 = 0 = 0 = 0 = + Net Income -500 0 0 0 0 0 0 0 Transaction a. b. C. d. e. f. g. h. N/A N/A N/A Cash Asset 0 + 0 + 0 + 0 ♦ Please answer all parts of the question. 0 ◆ 0 + 0 0 + + N/A Noncash Assets Inventory Accounts Receivable 0 = + 2000 = ◆ 4000 = + 0 ◆ 0 = → 0 = ♦ 0 = → 0 = ◆ 0 = + Balance Sheet Liabilities Wages Payable N/A Accounts Payable 500 + 2000 + 0 + 0 0 ♦ 0 + 0 0 N/A N/A N/A Contrib. Capital 0 + 0 + + 0 → 0 0 + 0 + 0 → 0 + N/A N/A N/A Earned Capital 0 > 0 ◆ N/A 0 $ → 0 → 0 ◆ 0 → 0 ◆ N/A 0 Revenues 0 + 0 + 4000 + 0 → 0 → 0 + 0 → 0 V Income Statement Expenses Wages Expense N/A 500 = + ♦ + 0 = 0 = + → → 0 = ◆ 0 = 0 = 0 = 0 = + Net Income -500 0 0 0 0 0 0 0

Answer rating: 100% (QA)

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