ansactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions wd ave upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance the nter with negative sign preceding the number e.g.-15,000 or parentheses eg. (15,000).) Cash Net Income (a) Purchased $140 of supplies for cash. -$140 $0 (b) Recorded an adjusting entry to record use of $40 of the above supplies. (c) Made sales of $1,320, all on account. (d) Received $700 from customers in payment of their accounts. (e) Purchased equipment for cash, $2,600. (f) Recorded depreciation of building for period used, $730.
ansactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions wd ave upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance the nter with negative sign preceding the number e.g.-15,000 or parentheses eg. (15,000).) Cash Net Income (a) Purchased $140 of supplies for cash. -$140 $0 (b) Recorded an adjusting entry to record use of $40 of the above supplies. (c) Made sales of $1,320, all on account. (d) Received $700 from customers in payment of their accounts. (e) Purchased equipment for cash, $2,600. (f) Recorded depreciation of building for period used, $730.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would
have upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance then
enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Cash
Net Income
(a) Purchased $140 of supplies for cash.
-$140
$0
(b) Recorded an adjusting entry to record use of $40 of the above
supplies.
(c) Made sales of $1,320, all on account.
(d) Received $700 from customers in payment of their accounts.
(e) Purchased equipment for cash, $2,600.
(f) Recorded depreciation of building for period used, $730.
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