Question

Analyzing Transactions Using the Financial Statement Effects Template
Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template.

Shareholders contribute $10,000 cash to the business in exchange for common stock.

Employees earn $500 in wages that have not been paid at period-end.

Inventory of $3,000 is purchased on credit.

The inventory purchased in transaction 3 is sold for $4,500 on credit.

The company collected the $4,500 owed to it per transaction 4.

Equipment is purchased for $5,000 cash.

Depreciation of $1,000 is recorded on the equipment from transaction 6.

The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $800 of supplies are still available. No supplies were purchased during this period.

The company paid $12,000 cash toward the principal on a note payable; also, $500 cash is paid to cover this note's interest expense for the period.

The company receives $8,000 cash in advance for services to be delivered next period.

Use negative signs with your answers, when appropriate.
Hint: For transaction 4, enter the net effect amount for balance sheet answers.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
1	Answer		Answer	=	Answer		Answer		Answer
2	Answer		Answer	=	Answer		Answer		Answer
3	Answer		Answer	=	Answer		Answer		Answer
4	Answer		Answer	=	Answer		Answer		Answer
5	Answer		Answer	=	Answer		Answer		Answer
6	Answer		Answer	=	Answer		Answer		Answer
7	Answer		Answer	=	Answer		Answer		Answer
8	Answer		Answer	=	Answer		Answer		Answer
9	Answer		Answer	=	Answer		Answer		Answer
10	Answer		Answer	=	Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer
Answer	-	Answer	=	Answer

Answer 1

	Balance sheet									Income statement
Transaction	cash Asset	+	Non cash asset	=	Liabilities	+	contributed capital	+	Earne dcapital	Revenue	-	expense	=	net Income
1	10000						10000
2					500				-500			500`		-500
3			3000		3000
4a			4500 increase in receivable ,-3000 inventory decrease 1500						1500	4500		3000		1500
5	4500		-4500
6	-5000		5000
7			(1000)						-1000			1000		-1000
8			-3000						-3000			3000		-3000
9	-12500				-12000				-500			500		-500
10	8000				8000