Question

For each of the following transactions, indicate how (i) net earnings and (ii) cash flows are affected. For each, state whether there will be an increase, a decrease, or no effect, and the amount (if any):
a. Issued shares to investors for $60,000.
b. Purchased inventory from suppliers for $2,500, on account.
c. Sold a unit of inventory for $500, on account. The unit had cost $300 and was already in inventory prior to its sale.
d. Purchased equipment for $10,000 cash.
e. Made a payment of $1,000 on accounts payable.
f. Used $300 of supplies. The supplies were purchased for cash in an earlier period.
g. Received a payment of $700 from a customer for inventory previously sold on account.
h. Declared (but did not yet pay) a dividend of $2,000.
i. Paid the $2,000 dividend that was declared above.
j. Depreciated equipment by $500.


$1.99
Sales0
Views52
Comments0
  • CreatedJune 11, 2015
  • Files Included
Post your question
5000