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$2-57.$ Analyzing Transactions Using the Financial Statement Effects Template and Preparing an

Income Statement $($FSET$)$

On December $1,$ R$.$ Lambert formed Lambert Services, which provides career and vocational counsel$-$

ing services to graduating college students. The following transactions took place during December,

and company accounts include the following: Cash, Accounts Receivable, Land, Accounts Payable,

Notes Payable, Common Stock, Retained Earnings, Counseling Services Revenue, Supplies Expense,

Advertising Expense, Interest Expense, Salary Expense, and Utilities Expense.

Raised $$21,000$ cash through common stock issuance.

Paid $$2,250$ cash for supplies and training materials.

Received $$1,500$ invoice for December advertising expenses.

Borrowed $$45,000$ cash from bank and signed note payable for that amount.

Received $$3,600$ cash for counseling services rendered.

Billed clients $$20,400$ for counseling services rendered.

Paid $$6,600$ cash for secretary salary.

Paid $$1,110$ cash for December utilities.

Declared and paid a $$2,700$ cash dividend.

Purchased land for $$39,000$ cash to use for its own facilities.

Paid $$300$ cash to bank as December interest expense on note payable.

REQUIRED

a$.$ Report the effects for each of the separate transactions $1$ through $11$ using the financial state$-$

ment effects template. Total all columns and prove that $(1)$ assets equal liabilities plus equity

on December $31,$ and $(2)$ revenues less expenses equal net income for December.

b$.$ Prepare an income statement for the month of December.

Help me complete a$.$ and b$.$

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