Assessing Financial Statement Effects of Transactions
B. Fischer started Fischer Company, a cleaning services firm, on April 1. The following transactions are for April.
April 1 B. Fischer invested $18,000 cash to begin the business in exchange for common stock.
2 Paid $5,700 cash for six months lease on a van for the business.
3 Borrowed $20,000 cash from a bank and signed a note payable, agreeing to repay it in one year plus 10% interest.
4 Purchased $11,000 in cleaning equipment; the company paid $5,000 cash with the remainder due within 30 days.
5 Paid $8,600 cash for cleaning supplies.
7 Paid $700 cash for advertisements to run in the area newspaper during April.
21 Billed customers $7,000 for services performed.
23 Paid $6,000 cash toward the account for cleaning equipment (see April 4).
28 Collected $4,600 cash from customers on their accounts billed on April 21.
29 Paid $2,000 cash for dividends.
30 Paid $5,500 cash for April wages.
30 Paid $1,990 cash for gasoline used during April.
Record the transactions for April using the following financial statement effects template.
Note: Use negative signs with answers when appropriate.
Note: If an answer field is not needed, leave it blank (not all answer fields will be used).
BALANCE SHEET
INCOME STATEMENT
Cash
Transaction
Asset
Noncash
Assets
Contributed
Earned
Net
Liabilities
Capital
Capital
Revenues
Expenses
Income
April 1: Invested cash for common stock
18,000
0
0
18,000
0
0
0
0
April 2: Paid for 6 months lease on a van
0
5,700
0
0
0
0
0
0
April 3: Borrowed cash from a bank
20,000
0
20,000
0
0
0
0
0
April 4: Purchased cleaning equipment
0
11,000
6,000
0
0
0
0
0
April 5: Paid cash for cleaning supplies
8,600
8,600
0
0
0
0
0
0
April 7: Paid cash for advertisements
700
0
0
0
0
700
0
April 21: Billed customers for services performed
7,000
0
0
0
7,000
0
0
April 23: Paid cash on the account for cleaning equip.
6,000
0
0
0
0
0
0
0
April 28: Collected cash from customers
4,600
0
0
0
0
0
0
0
April 29: Paid cash for dividends
2,000
0
0
0
0
0
0
0
April 30: Paid cash for April wages
5,500
0
0
0
0
0
0
0
April 30: Paid cash for gasoline used during April
1,990
0
0
0
0
1,990
0
