Transactions that affect cash do not necessarily affect profit. Identify the impact, if any, of each of
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Transactions that affect cash do not necessarily affect profit. Identify the impact, if any, of each of the following transactions on cash and profit. The first transaction has been completed for you as an example.
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Profit (a) Purchased supplies for cash, $100 -$100 (b) Made an adjusting entry to record use of $75 of the supplies in (a). (c) (d) Performed services on account, $1,000 Received $800 from customers in payment of their account in (c). (e) Purchased equipment for cash, $5,000 (f) Made an adjusting entry to record depreciation of equipment in (e), $1,000. (g) Obtained a $1,000 bank loan. (h) Made an adjusting entry to accrue interest on the loan in (g), $50 (i) Received $500 cash for services to be provided in the future. ) Made an adjusting entry relating to the amount received in (i) to show that $200 of the services had now been provided. (k) Made an adjusting entry to record utilities incurred but not yet paid, $250
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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