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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 $10,000 cash to the business in exchange for common stock. Employees earn $500 in wages that have not been paid at period-end. Inventory of $3,000 is purchased on credit. The inventory purchased in transaction 3 is sold for $4,500 on credit. The company collected the $4,500 owed to it per transaction 4. Equipment is purchased for $5,000 cash. Depreciation of $1,000 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 $800 of supplies are still available. No supplies were purchased during this period. The company paid $12,000 cash toward the principal on a note payable; also, $500 cash is paid to cover this note's interest expense for the period. The company receives $8,000 cash in advance for services to be delivered next period. Use negative signs with your answers, when appropriate. Hint: For transaction 4, enter the net effect amount for balance sheet answers.
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