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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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