Question: Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
| Cash | Net Income | |||
|---|---|---|---|---|
| (a) Purchased $ 110 of supplies for cash. | $ 110 | $0 | ||
| (b) Recorded an adjusting entry to record use of $ 20 of the above supplies. | enter a dollar amount | enter a dollar amount | ||
| (c) Made sales of $ 1,500, all on account. | enter a dollar amount | enter a dollar amount | ||
| (d) Received $ 850 from customers in payment of their accounts. | enter a dollar amount | enter a dollar amount | ||
| (e) Purchased equipment for cash, $ 2,550. | enter a dollar amount | enter a dollar amount | ||
| (f) Recorded depreciation of building for period used, $ 740. |
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