Transactions that affect earnings 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. Cash Net Income (a) Purchased $100 of supplies for cash. − $100 $ 0 (b) Received $700 from customers in payment of their accounts. (c) Made sales of $1,200, all on account. (d) Recorded an adjustment to record use of $20 of the above supplies. (e) Purchased equipment for cash, $2,500. (f) Recorded depreciation of building for period used, $600.
Transactions that affect earnings 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. Cash Net Income (a) Purchased $100 of supplies for cash. − $100 $ 0 (b) Received $700 from customers in payment of their accounts. (c) Made sales of $1,200, all on account. (d) Recorded an adjustment to record use of $20 of the above supplies. (e) Purchased equipment for cash, $2,500. (f) Recorded depreciation of building for period used, $600.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 3BE: Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected...
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1 Transactions that affect earnings 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.
|
|
Cash |
Net Income |
|
|
(a) |
Purchased $100 of supplies for cash. |
− $100 |
$ 0 |
|
(b) |
Received $700 from customers in payment of their accounts. |
|
|
|
(c) |
Made sales of $1,200, all on account. |
|
|
|
(d) |
Recorded an adjustment to record use of $20 of the above supplies. |
|
|
|
(e) |
Purchased equipment for cash, $2,500. |
|
|
|
(f) |
Recorded |
|
|
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