PA2. LO 4.1To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income.paid balance due for accounts payable $6,900charged clients for legal services provided $5,200purchased supplies on account $1,750collected legal service fees from clients for current month $3,700issued stock in exchange for a note payable $10,000

Cash Basis of Accounting - Under the Cash Basis of accounting, transactions are recorded in the…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PA: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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PA2.

LO 4.1To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income.

paid balance due for accounts payable $6,900
charged clients for legal services provided $5,200
purchased supplies on account $1,750
collected legal service fees from clients for current month $3,700
issued stock in exchange for a note payable $10,000

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