Analyzing transactions using the financial statement effects

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Reference no: EM131815634

Question: Analyzing Transactions Using the Financial Statement Effects Template

Analyzing Transactions Using the Financial Statement Effects Template

Werner Realty Company began the month with the following balance sheet

2281_Cash 2.png

Following are summary transactions that occurred during the current month.

1. The company purchased $6,000 of supplies on credit.

2. The company received $8,000 cash from a new customer for services to be performed next month.

3. The company paid $6,000 cash to cover of?ce rent for two months (the current month and the next).

4. The company billed clients for $25,000 of work performed.

5. The company paid employees $6,000 cash for work performed.

6. The company collected $25,000 cash from accounts receivable in transaction 4.

7. The company recorded $4,000 depreciation on its equipment.

8. At month-end, $2,000 of supplies purchased in transaction 1 are still available; no supplies were available when the month began.

Required: a. Record the effects of each transaction using the ?nancial statement effects template.

b. Prepare the income statement for this month and the balance sheet as of month-end.

Reference no: EM131815634

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