Analyzing Transactions Using the Financial Statement Effects Template and Preparing an
Income Statement FSET
On December R Lambert formed Lambert Services, which provides career and vocational counsel
ing services to graduating college students. The following transactions took place during December,
and company accounts include the following: Cash, Accounts Receivable, Land, Accounts Payable,
Notes Payable, Common Stock, Retained Earnings, Counseling Services Revenue, Supplies Expense,
Advertising Expense, Interest Expense, Salary Expense, and Utilities Expense.
Raised $ cash through common stock issuance.
Paid $ cash for supplies and training materials.
Received $ invoice for December advertising expenses.
Borrowed $ cash from bank and signed note payable for that amount.
Received $ cash for counseling services rendered.
Billed clients $ for counseling services rendered.
Paid $ cash for secretary salary.
Paid $ cash for December utilities.
Declared and paid a $ cash dividend.
Purchased land for $ cash to use for its own facilities.
Paid $ cash to bank as December interest expense on note payable.
REQUIRED
a Report the effects for each of the separate transactions through using the financial state
ment effects template. Total all columns and prove that assets equal liabilities plus equity
on December and revenues less expenses equal net income for December.
b Prepare an income statement for the month of December.
Help me complete a and b
