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! Required information Exercise 13-10A Recording supplies and identifying their effect on financial statements LO 13-1, 13-3, 13-4 [The following information applies to the questions displayed below.) Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $24,300 of services on account, and (2) he purchased $3,200 of supplies on account. There were $1,050 of supplies on hand as of December 31, Year 1. c. Show the above transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC for net change in cash. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Assets Liabilities + Stockholders' Equity Revenue Expense Net Income No. Statement of Cash Flows Accounts Receivable Supplies Accounts Payable Common Stock Retained Earnings a1. a2. + + b. Bal. 0+ 0 = + 0+ 0 01- 0] = 0 d. Explain why the amounts of net income and net cash flow from operating activities differ. Net income is ; Net Cash Flow from Operating Activities is of revenue was earned on account, but none was collected; of supplies were used, but none were paid for