Question: Analyzing Transactions Using the Financial Statement Effects Template
Record the effect of each of the following transactions for Hora Company using the ?nancial 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