Circle whether each of the following events/transactions will (I)ncrease, (D)ecrease, or have (No) effect on net income.
NET INCOME
(Circle the answer)
a. Record a sale for Customer Ashley paying cash. (____/ D / No)
b1. Record a sale for Customer Ewa on account. (____/ D / No)
b2. Record cash received from Customer Ewa for the sale recorded in (b1). (I / D / ____)
c1. Purchase equipment. (I / D / ____)
c2. At the end of the accounting period, make the adjusting entry to record depreciation for the equipment. (I / ____/ No)
c3. Record a loss on the sale of equipment. (I / ____/ No)
d1. Borrow $10,000 from the bank and sign a note. (I / D / ____)
d2. At the end of the accounting period, make the adjusting entry to record accrued interest expense on the note in (d1). (I / ____/ No)
d3. Repay the $10,000 note. (I / D / ____)
e. Pay rent for this accounting period. (I / ____/ No)
f. Record an extraordinary gain. (____/ D / No)
g. Declare and issue a cash dividend. (I / D / ____)
h. Issue common stock for more than the par value. (I / D / ____)
i. At the end of the accounting period, record the portion of sales estimated as uncollectible. (I / ____ / No)
j. At the end of the accounting period, record an unrealized gain on the short-term trading securities portfolio. (____ / D / No)