The following transactions occurred during a recent year: a. Paid wages of $550 for the current...

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The following transactions occurred during a recent year: a. Paid wages of $550 for the current period (example). b. Borrowed $2,750 cash from local bank using a short-term note. c. Purchased $1,100 of equipment on credit. d. Earned $220 of sales revenue; collected cash. e. Received $440 of utilities services, on credit. f. Earned $950 of service revenue, on credit. g. Paid $165 cash on account to a supplier. h. Incurred $40 of travel expenses; paid cash. 1. Earned $220 of service revenue; collected half in cash, with balance on credit. J. Collected $70 cash from customers on account. k. Incurred $180 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the company's preliminary net income. Preliminary Net Income $ (135) X < Required 1 Required 2 > The following transactions occurred during a recent year: a. Paid wages of $550 for the current period (example). b. Borrowed $2,750 cash from local bank using a short-term note. c. Purchased $1,100 of equipment on credit. d. Earned $220 of sales revenue; collected cash. e. Received $440 of utilities services, on credit. f. Earned $950 of service revenue, on credit. g. Paid $165 cash on account to a supplier. h. Incurred $40 of travel expenses; paid cash. 1. Earned $220 of service revenue; collected half in cash, with balance on credit. J. Collected $70 cash from customers on account. k. Incurred $180 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the company's preliminary net income. Preliminary Net Income $ (135) X < Required 1 Required 2 >

Answer rating: 100% (QA)

Answer Transaction Account Amount Effect a Wages 550 b Cash 2750 Notes Payable 2750 c Equipment 110... View the full answer