Paid $2,400 cash on October 1 to purchase a one-year insurance policy.Purchased $1,250 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $350.Provided services for $8,000 cash.Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year.Accrued salaries amounting to $4,100.Sold land that cost $17,100 for $17,100 cash.Acquired $50,500 cash from the issue of common stock.Earned $12,700 of revenue on account. Collected $11,430 cash from accounts receivable.Paid cash operating expenses of $1,950.*Just answers needed* Net IncomeEvent/Adjustment Direction of Amount ofChangeChangea.Adj.b.Adj.C.Adj.d.Adj.e.Adj.f.Adj.g.Adj.h.Adj.i.Adj.Decrease600Cash Flows fromOperating ActivitiesDirection of Amount ofChangeChange$Decrease2,400

Name: Paid $2,400 cash on October 1 to purchase a one-year insurance policy.
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Description: Paid $2,400 cash on October 1 to purchase a one-year insurance policy.Purchased $1,250 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $350.Provided services for $8,000 cas

Net Income - It increases with the Revenue earned and decreases with the Expenses. Cash Flow from…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.20E: Multiple-step income statement Identify the enurs in the following income statement and prepare a...

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Paid $2,400 cash on October 1 to purchase a one-year insurance policy.
Purchased $1,250 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $350.
Provided services for $8,000 cash.
Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year.
Accrued salaries amounting to $4,100.
Sold land that cost $17,100 for $17,100 cash.
Acquired $50,500 cash from the issue of common stock.
Earned $12,700 of revenue on account. Collected $11,430 cash from accounts receivable.
Paid cash operating expenses of $1,950.

*Just answers needed*

Net Income
Event/
Adjustment Direction of Amount of
Change
Change
a.
Adj.
b.
Adj.
C.
Adj.
d.
Adj.
e.
Adj.
f.
Adj.
g.
Adj.
h.
Adj.
i.
Adj.
Decrease
600
Cash Flows from
Operating Activities
Direction of Amount of
Change
Change
$
Decrease
2,400

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