Analyzing Transactions Using the Financial Statement Effects Template
Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template.
Shareholders contribute $7,500 cash to the business in exchange for common stock. Employees earn $375 in wages that have not been paid at period-end. Inventory of $2,250 is purchased on credit. The inventory purchased in transaction 3 is sold for $3,375 on credit. The company collected the $3,375 owed to it per transaction 4. Equipment is purchased for $3,750 cash. Depreciation of $750 is recorded on the equipment from transaction 6. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $600 of supplies are still available. No supplies were purchased during this period. The company paid $7,500 cash toward the principal on a note payable; also, $375 cash is paid to cover this note's interest expense for the period. The company receives $6,000 cash in advance for services to be delivered next period.