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. (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).) a. Purchased $102 of supplies for cash. b. Recorded an adjusting entry to record use of $27 of the above supplies. Cash -$102 Net Income $0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Weat

Current Attempt in Progress
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. (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).)
a. Purchased $102 of supplies for cash.
b. Recorded an adjusting entry to record use of $27 of the above
supplies.
c. Made sales of $1,326, all on account.
d. Received $816 from customers in payment of their accounts.
e. Purchased equipment for cash, $2,550.
f. Recorded depreciation of building for period used, $612.
Cash
- $102
Net Income
$0
Transcribed Image Text:Current Attempt in Progress 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. (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).) a. Purchased $102 of supplies for cash. b. Recorded an adjusting entry to record use of $27 of the above supplies. c. Made sales of $1,326, all on account. d. Received $816 from customers in payment of their accounts. e. Purchased equipment for cash, $2,550. f. Recorded depreciation of building for period used, $612. Cash - $102 Net Income $0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Methods of accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education