On January $10,2022,$ the first day of the spring semester, the cafeteria of The Defiance College purchased for cash enough paper napkins to last the entire $16-$week semester. The total cost was $$4,550.$

Required:

Prepare the Horizontal model and Journal entry for each of the following transactions.

a$.$ The purchase of the paper napkins, assuming that the purchase was initially recorded as an expense.

b$.$ At January $31,$ it was estimated that the cost of the paper napkins used during the first three weeks of the semester totaled $$980.$

c$.$ The purchase of the paper napkins, assuming that the purchase was initially recorded as an asset.

d$.$ At January $31$ if the initial purchase had been recorded as in $c.$

Indicate the financial statement effect.

Consider the effects that entries a and $b$ would have on the following:

a$.$ Income statement for the month of January?

b$.$ Balance sheet at January $31?$

Complete this question by entering your answers in the tabs below.

$1-$a$.$ Prepare the Horizontal model for each of the following transactions.

a$.$ The purchase of the paper napkins, assuming that the purchase was initially recorded as an expense.

b$.$ At January $31,$ it was estimated that the cost of the paper napkins used during the first three weeks of the semester totaled $$980.$

$1-$a$.$ Prepare the Horizontal model for each of the following transactions.

a$.$ The purchase of the paper napkins, assuming that the purchase was initially recorded as an expense.

b$.$ At January $31,$ it was estimated that the cost of the paper napkins used during the first three weeks of the semester totaled $$980.$

c$.$ The purchase of the paper napkins, assuming that the purchase was initially recorded as an asset.

d$.$ At January $31$ if the initial purchase had been recorded as in $c.$

Indicate the financial statement effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

$\backslash$table$[[,$Balance Sheet,Income Statement$],[,$Assets,$=,$Liabilities,$+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]],$Net income,$=,$Revenues,Expenses$],[$a$.,$Cash $-4,550,,,,,,,$Cash $-4,550,$Cash $-4,55$