Texts: Analyzing Transactions and Adjustments Using the Financial Statement Effects Template
1. S. Penman contributed $220,000 cash to the company in return for common stock. Penman also lent the company $121,000. This $121,000 note is due one year hence.
2. The company purchased inventory for $176,000 cash in March.
3. The company had March sales of $220,000, of which $132,000 was for cash and $88,000 on credit. Total cost of goods sold for its March sales was $154,000.
4. The company purchased future advertising time from a local radio station for $22,000 cash.
5. During March, $16,500 worth of radio spots purchased in transaction 4 are aired. The remaining spots will be aired in April.
6. Employee wages earned and paid during March total $37,400 cash.
7. Prior to disclosing the financial statements, the company recognized that employees had $9,000 of unpaid wages.
8. The company recorded $4,400 of depreciation for March relating to its equipment.
a. Record the effect of each transaction using the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Balance Sheet
Assets Liabilities Equity
Cash N/A Common Stock
Accounts Receivable N/A Retained Earnings
Inventory N/A Total Liabilities and Equity
Prepaid Advertising N/A
Net PPE N/A
Wages Payable N/A
Notes Payable N/A
Income Statement
Sales Cost of Goods Sold Gross Profit
N/A N/A N/A
Advertising Expense Wages Expense Depreciation Expense
N/A N/A N/A
Net Income
Note: Do not use negative signs with your answers.
Anifoods, Inc.
Sales Cost of Goods Sold Gross Profit
N/A N/A N/A
Advertising Expense Wages Expense Depreciation Expense
N/A N/A N/A
Net Income
Anifoods, Inc.
Cash Accounts Receivable Inventory
N/A N/A N/A
Prepaid Advertising N/A Net PPE
N/A Wages Payable Notes Payable
N/A N/A N/A
Liabilities Common Stock Retained Earnings
N/A N/A N/A
Total Liabilities and Equity
N/A
