Question

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. (If an amount reduces the account balance, then enter with a negative sign preceding the number, e.g., -15,000 or parentheses, e.g., (15,000).) Cash Net Income (a) Purchased $175 of supplies for cash. -$175 $0 (b) Recorded an adjusting entry to record the use of $30 of the above supplies. enter a dollar amount enter a dollar amount (c) Made sales of $1,500, all on account. enter a dollar amount enter a dollar amount (d) Received $700 from customers in payment of their accounts. enter a dollar amount enter a dollar amount (e) Purchased equipment for cash, $2,700. enter a dollar amount enter a dollar amount (f) Recorded depreciation of the building for the period used, $720. enter a dollar amount enter a dollar amount

          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. (If an amount reduces the account balance, then enter with a negative sign preceding the number, e.g., -15,000 or parentheses, e.g., (15,000).)

Cash
Net Income
(a) Purchased $175 of supplies for cash.
-$175
$0
(b) Recorded an adjusting entry to record the use of $30 of the above supplies.
enter a dollar amount
enter a dollar amount
(c) Made sales of $1,500, all on account.
enter a dollar amount
enter a dollar amount
(d) Received $700 from customers in payment of their accounts.
enter a dollar amount
enter a dollar amount
(e) Purchased equipment for cash, $2,700.
enter a dollar amount
enter a dollar amount
(f) Recorded depreciation of the building for the period used, $720.
enter a dollar amount
enter a dollar amount

Added by Catherine N.

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