Consider the following set of transactions occurring during the month of May for Bison Consulting Company. For each transaction, indicate the impact on
(1) the balance of cash,
(2) cash-basis net income, and
(3) accrual-basis net income for May. The first answer is provided as an example. (Negative amounts should be indicated by a minus sign.)
Impact on:
(A) Receive $1,500 from customers whowere billed for services in April.
(B) Provide $3,200 of consulting servicesto a local business. Payment is notexpected until June.
(C) Purchase office supplies for $400 onaccount. All supplies are used by theend of May.
(D) Pay $600 to workers. $400 is for work inMay and $200 is for work in April.
(E) Pay $200 to advertise in a localnewspaper in May.
Totals

(A) Receive $1,500 from customers who were billed for services in April.

(1) the balance of cash WILL  INCREASE by $1500

(2) cash-basis net income WILL INCREASE by $1500

(3) accrual-basis net income for May WILL HAVE NO EFFECT

(B) Provide $3,200 of consulting services to a local business. Payment is not expected until June.

(1) the balance of cash WILL HAVE  NO EFFECT

(2) cash-basis net income, WILL HAVE  NO EFFECT

(3) accrual-basis net income for May WILL INCREASE by $3,200

(C) Purchase office supplies for $400 on account. All supplies are used by the end of May.

(1) the balance of cash WILL HAVE NO EFFECT

(2) cash-basis net income WILL HAVE NO EFFECT

(3) accrual-basis net income WILL REDUCE by $400 (expenses are outflows)

(D) Pay $600 to workers. $400 is for work in May and $200 is for work in April.

(1) the balance of cash WILL REDUCE by $600

(2) cash-basis net income, WILL REDUCE by $600

(3) accrual-basis net income WILL REDUCE by $400

(E) Pay $200 to advertise in a local newspaper in May.

(1) the balance of cash WILL REDUCE by $200

(2) cash-basis net income, WILL REDUCE by $200

(3) accrual-basis net income WILL REDUCE by $200

Explanation:

For each transaction, indicate the impact on  

(1) the balance of cash,  

(2) cash-basis net income, and  

(3) accrual-basis net income for May. The first answer is provided as an example. (Negative amounts should be indicated by a minus sign.)

Impact on:

(A) Receive $1,500 from customers who were billed for services in April.

(1) the balance of cash WILL  INCREASE by $1500

(2) cash-basis net income WILL INCREASE by $1500

(3) accrual-basis net income for May WILL HAVE NO EFFECT

(B) Provide $3,200 of consulting services to a local business. Payment is not expected until June.

(1) the balance of cash WILL HAVE  NO EFFECT

(2) cash-basis net income, WILL HAVE  NO EFFECT

(3) accrual-basis net income for May WILL INCREASE by $3,200

(C) Purchase office supplies for $400 on account. All supplies are used by the end of May.

(1) the balance of cash WILL HAVE NO EFFECT

(2) cash-basis net income WILL HAVE NO EFFECT

(3) accrual-basis net income WILL REDUCE by $400 (expenses are outflows)

(D) Pay $600 to workers. $400 is for work in May and $200 is for work in April.

(1) the balance of cash WILL REDUCE by $600

(2) cash-basis net income, WILL REDUCE by $600

(3) accrual-basis net income WILL REDUCE by $400

(E) Pay $200 to advertise in a local newspaper in May.

(1) the balance of cash WILL REDUCE by $200

(2) cash-basis net income, WILL REDUCE by $200

(3) accrual-basis net income WILL REDUCE by $200

the answer is either "loser" or "dumb*ss"

gods, i'm only joking, don't ban me.*

the answers are

a, b, c, & e.