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 $175 of supplies for cash.   –$175   $0 (b) Recorded an adjusting entry to record use of $30 of the above supplies.   enter a dollar amount   enter a dollar amount (c) Made sales of $1,500, all on account.   enter a dollar amount   enter a dollar amount (d) Received $700 from customers in payment of their accounts.   enter a dollar amount   enter a dollar amount (e) Purchased equipment for cash, $2,700.   enter a dollar amount   enter a dollar amount (f) Recorded depreciation of building for period used, $720.   enter a dollar amount   enter a dollar amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $175 of supplies for cash.
  –$175   $0
(b) Recorded an adjusting entry to record use of $30 of the above supplies.
  enter a dollar amount   enter a dollar amount
(c) Made sales of $1,500, all on account.
  enter a dollar amount   enter a dollar amount
(d) Received $700 from customers in payment of their accounts.
  enter a dollar amount   enter a dollar amount
(e) Purchased equipment for cash, $2,700.
  enter a dollar amount   enter a dollar amount
(f) Recorded depreciation of building for period used, $720.
  enter a dollar amount   enter a dollar amount
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