Record the following transactions for the month of October 2022 in the financial statements effects template below and record the journal entries. NOTE: 2 parts ot the question. Part 1: A) Paid for the purchase $3,000 of inventory. B and C) Sold inventory purchased in (A) for $8,000 on account. (Note: requires 2 entries) D) Received and paid electricity bill for $800 related to June E) Received $16,000 in cash for inventory to be delivered in November. Transaction A) B) C) D) E) Balance Sheet Cash Asset Noncash Assets = Liabilities + Contributed Earned Capital Capital Part 2: Record the journal entries for each transcation + Income Statement Rev. Exp. Ne =

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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# Accounting Transactions and Journal Entries for October 2022

## Overview

The following guide outlines the process to record transactions for the month of October 2022 using a financial statements effects template. This includes both the balance sheet and income statement impacts. Furthermore, journal entries for each transaction are required.

## Instructions

### Part 1:

**Transactions:**

- **A)** Paid for the purchase of $3,000 of inventory.
  
- **B and C)** Sold inventory purchased in (A) for $8,000 on account. *Note: requires 2 entries.*
  
- **D)** Received and paid an electricity bill for $800 related to June.
  
- **E)** Received $16,000 in cash for inventory to be delivered in November.

**Template for Accounting:**

| Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contributed Capital | + | Earned Capital | Income Statement | Rev. – Exp. = Net Income |
|-------------|------------|---|----------------|---|-------------|---|---------------------|---|----------------|-----------------|------------------------|
| A)          |            |   |                |   |             |   |                     |   |                |                 |                        |
| B)          |            |   |                |   |             |   |                     |   |                |                 |                        |
| C)          |            |   |                |   |             |   |                     |   |                |                 |                        |
| D)          |            |   |                |   |             |   |                     |   |                |                 |                        |
| E)          |            |   |                |   |             |   |                     |   |                |                 |                        |

### Part 2:

**Journal Entries for Each Transaction**: Record the appropriate journal entries reflecting each transaction from Part 1.

---

Make sure you analyze the template structure and understand how each transaction affects different components of the financial statements. Properly balance each transaction and ensure that the income statement reflects any changes in revenue and expenses.
Transcribed Image Text:# Accounting Transactions and Journal Entries for October 2022 ## Overview The following guide outlines the process to record transactions for the month of October 2022 using a financial statements effects template. This includes both the balance sheet and income statement impacts. Furthermore, journal entries for each transaction are required. ## Instructions ### Part 1: **Transactions:** - **A)** Paid for the purchase of $3,000 of inventory. - **B and C)** Sold inventory purchased in (A) for $8,000 on account. *Note: requires 2 entries.* - **D)** Received and paid an electricity bill for $800 related to June. - **E)** Received $16,000 in cash for inventory to be delivered in November. **Template for Accounting:** | Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contributed Capital | + | Earned Capital | Income Statement | Rev. – Exp. = Net Income | |-------------|------------|---|----------------|---|-------------|---|---------------------|---|----------------|-----------------|------------------------| | A) | | | | | | | | | | | | | B) | | | | | | | | | | | | | C) | | | | | | | | | | | | | D) | | | | | | | | | | | | | E) | | | | | | | | | | | | ### Part 2: **Journal Entries for Each Transaction**: Record the appropriate journal entries reflecting each transaction from Part 1. --- Make sure you analyze the template structure and understand how each transaction affects different components of the financial statements. Properly balance each transaction and ensure that the income statement reflects any changes in revenue and expenses.
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