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 eg.-15,000 or parentheses eg. (15,000).) Cash Net Income a. Purchased $ 116 of supplies for cash. -$ 116 $0 b. Recorded an adjusting entry to record use of $ 34 of the above supplies. c. Made sales of $ 1,508, all on account. d. Received $928 from customers in payment of their accounts. e. Purchased equipment for cash, $ 2,900. f. Recorded depreciation of building for period used, $ 696.
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 eg.-15,000 or parentheses eg. (15,000).) Cash Net Income a. Purchased $ 116 of supplies for cash. -$ 116 $0 b. Recorded an adjusting entry to record use of $ 34 of the above supplies. c. Made sales of $ 1,508, all on account. d. Received $928 from customers in payment of their accounts. e. Purchased equipment for cash, $ 2,900. f. Recorded depreciation of building for period used, $ 696.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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fill in the blanks for cash and net income and explain why
Transcribed Image Text: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 eg. (15,000).)
Cash
Net Income
a. Purchased $ 116 of supplies for cash.
-$116
$0
b. Recorded an adjusting entry to record use of $ 34 of the above
supplies.
c. Made sales of $ 1,508, all on account.
d. Received $ 928 from customers in payment of their accounts.
e. Purchased equipment for cash, $ 2,900.
f. Recorded depreciation of building for period used, $ 696.
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