Prepare an answer sheet with the column heading shown here. For each of the following transactions or adjustments indicate the effect of the transactions or adjustment on the appropriate balance sheet category and on the net income by entering fo rash account affected the account name and amounts and indicating whether it is an addition (+) or a subtraction (-). Transaction A has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction s are included in that category.

a. accrued interest revenue of $30 on a note receivable

b. determined that the allowance for bad debts account balance should be increased by $2050

c. recognized bank service charges of $24 for the month

d. received $30 cash for interest accrued in a prior month

e. purchased 7 unites of a new item of inventory on account at a cost of $31 each. perpetual inventory is maintained.

f. purchased 11 more units on account of the above item at a cost of $36 each. perpetual inventory is maintained

g. sold 10 of the items purchased (in e and F) and recognized the cost of goods sold using the FIFO cost flow assumption. perpetual inventory is maintained.

Transactions	Current Assets	Current Liabilities	Stockholders Equity	Net Income
a	interest receivable+30			interest revenue +30
b
c
d
e
f
g