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. 1. Shareholders contribute $15,000 cash to the business in exchange for common stock. 2. Employees earn $750 in wages that have not been paid at period-end. 3. Inventory of $4,500 is purchased on credit. 4. The e inventory purchased in transaction 3 is sold for $6,750 on credit. 5. The company collected the $6,750 owed to it per transaction 4. 6. Equipment is purchased for $7,500 cash. 7. Depreciation of $1,500 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period. 9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest expense for the period. 10. The company receives $12,000 cash in advance for services to be delivered next period. 7 8 9 Use a negative sign with your answers, when appropriate. Hint: For transaction 4, enter the net effect amount for balance sheet answers. Balance Sheet Cash Transaction Asset Noncash Assets - Liabilities + Contributed Capital + Earned Capital Income Statement Revenue Expenses Net Income
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. 1. Shareholders contribute $15,000 cash to the business in exchange for common stock. 2. Employees earn $750 in wages that have not been paid at period-end. 3. Inventory of $4,500 is purchased on credit. 4. The e inventory purchased in transaction 3 is sold for $6,750 on credit. 5. The company collected the $6,750 owed to it per transaction 4. 6. Equipment is purchased for $7,500 cash. 7. Depreciation of $1,500 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period. 9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest expense for the period. 10. The company receives $12,000 cash in advance for services to be delivered next period. 7 8 9 Use a negative sign with your answers, when appropriate. Hint: For transaction 4, enter the net effect amount for balance sheet answers. Balance Sheet Cash Transaction Asset Noncash Assets - Liabilities + Contributed Capital + Earned Capital Income Statement Revenue Expenses Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
1. Shareholders contribute $15,000 cash to the business in exchange for common stock.
2. Employees earn $750 in wages that have not been paid at period-end.
3. Inventory of $4,500 is purchased on credit.
4. The inventory purchased in transaction 3 is sold for $6,750 on credit.
5. The company collected the $6,750 owed to it per transaction 4.
6. Equipment is purchased for $7,500 cash.
7. Depreciation of $1,500 is recorded on the equipment from transaction 6.
8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period.
9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest expense for the period.
10. The company receives $12,000 cash in advance for services to be delivered next period.
1
2
3
4
5
6
7
8
9
10
Use a negative sign with your answers, when appropriate.
Hint: For transaction 4, enter the net effect amount for balance sheet answers.
Balance Sheet
Cash
Transaction Asset +
Noncash
Assets
Contributed
= Liabilities + Capital +
Earned
Capital
Revenue
Income Statement
-
-
-
-
Expenses = Net Income
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