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Analyzing Transactions Using the Financial Statement Effects Template

Record the effect of each of the following independent transactions using the financial statements effects template provided. Confirm that Assets = Liabilities + Equity for each transaction.

Balance Sheet												Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital			Revenue	-	Expenses	=	Net Income
(1) Receive 25000 in exchange for common stock.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(2) Borrow 5000 from bank.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(3) Purchase 1000 of supplies inventory on credit.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(4) Receive 7500 cash from customers for services provided.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(5) Pay 1000 cash to supplier in transaction 3.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(6) Receive order for future services with 1750 advance payment.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(7) Pay 2500 cash dividend to shareholders.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(8) Pay employees 3000 cash for compensation earned.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
(9) Pay 250 cash for interest on loan in transaction 2.	Answer	+	Answer	=	Answer	+	Answer	+	Answer			Answer	-	Answer	=	Answer
Totals	$Answer	+	$Answer	=	$Answer	+	$Answer	+	$Answer			$Answer	-	$Answer	=	$Answer

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