amount. a. Paid $2,300 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,500 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $250. c. Provided services for $7,400 cash. d. Collected $10,300 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $4,700. f. Sold land that cost $18,400 for $18,400 cash. g. Acquired $54,500 cash from the issue of common stock. h. Earned $12,500 of revenue on account. Collected $11,250 cash from accounts receivable. i. Paid cash operating expenses of $1,850. Net Income Event/ Adjustment Direction of Amount of Change Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment 9 Adjustment $ 575 Cash Flows from Operating Activities Direction of Change Decrease Decrease Amount of Change $2,300 850

amount. a. Paid $2,300 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,500 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $250. c. Provided services for $7,400 cash. d. Collected $10,300 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $4,700. f. Sold land that cost $18,400 for $18,400 cash. g. Acquired $54,500 cash from the issue of common stock. h. Earned $12,500 of revenue on account. Collected $11,250 cash from accounts receivable. i. Paid cash operating expenses of $1,850. Net Income Event/ Adjustment Direction of Amount of Change Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment 9 Adjustment $ 575 Cash Flows from Operating Activities Direction of Change Decrease Decrease Amount of Change $2,300 850

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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