Reference no: EM133145181

Question - Analyzing Transactions Using the Financial Statement Effects Template - Hanlon Advertising Company began the current month with the following balance sheet.

Cash	$80,000	Liabilities	$70,000
Noncash assets	135,000	Contributed capital	110,000
		Earned capital	35,000
Total assets	$215,000	Total liabilities and equity	$215,000

Following are summary transactions that occurred during the current month.

1. The company purchased supplies for $5,000 cash; none were used this month.

2. Services of $2,500 were performed this month on credit.

3. Services were performed for $10,000 cash this month.

4. The company purchased advertising for $8,000 cash; the ads will run next month.

5. The company received $1,200 cash as partial payment on accounts receivable from transaction 2.

6. The company paid $3,400 cash toward the accounts payable balance reported at the beginning of the month.

7. Paid $3,500 cash toward this month's wages expenses.

8. The company declared and paid dividends of $500 cash.

(a) Record the effects of each transaction using the financial statement effects template.

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