BE3.2 (LO 1), Transactions that affect net income 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. a. Purchased $100 of supplies for cash. b. Recorded an adjusting entry to record use of $20 of the above supplies. c. Made sales of $1,300, all on account. d. Received $800 from customers in paymen of their accounts. e. Purchased equipment for cash, $2,500.
BE3.2 (LO 1), Transactions that affect net income 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. a. Purchased $100 of supplies for cash. b. Recorded an adjusting entry to record use of $20 of the above supplies. c. Made sales of $1,300, all on account. d. Received $800 from customers in paymen of their accounts. e. Purchased equipment for cash, $2,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:BE3.2 (LO 1), C Transactions that affect net
income 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.
a. Purchased $100 of supplies for cash.
b. Recorded an adjusting entry to record use
of $20 of the above supplies.
c. Made sales of $1,300, all on account.
d. Received $800 from customers in payment
of their accounts.
e. Purchased equipment for cash, $2,500.
f. Recorded depreciation of building for
period used, $600.
Indicate why adjusting entries are needed.
Transcribed Image Text:Brief Exercises
Identify the order of the five steps in the revenue
recognition process.
BE3.1 (LO 1), K Number the following steps of
the revenue recognition process (from 1-5) to
place in the correct order.
Allocate the transaction price
to the separate performance obligations.
а.
b.
Identify the contract with
customers.
Identify the separate
performance obligations in the contract.
с.
d.
Recognize revenue when each
performance obligation is satisfied.
е.
Determine the transaction
price.
Identify impact of transactions on cash and net
income.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education