Question: Analyzing Transactions Using the Financial Statement Effects Template
Following are selected transactions of Mogg Company. Record the effects of each using the ?nancial statement effects template.
1. Shareholders contribute $10,000 cash to the business in exchange for common stock.
2. Employees earn $500 in wages that have not been paid at period-end.
3. Inventory of $3,000 is purchased on credit.
4. The inventory purchased in transaction 3 is sold for $4,500 on credit.
5. The company collected the $4,500 owed to it per transaction 4.
6. Equipment is purchased for $5,000 cash.
7. Depreciation of $1,000 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 $800 of supplies are still available. No supplies were purchased during this period.
9. 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.
10. The company received $8,000 cash in advance for services to be delivered next period