Business, 26.03.2021 22:20 domenicaBeBe2007

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 has a decreasing effect use either a negative sign preceding the number, e. g. -45 or parenthesis, e. g. (45). Do not use a dollar sign $ for negative answers.) Cash Net Income(a)Purchased $104 of supplies for cash. -$104 $0(b)Recorded an adjusting entry to record use of $40 of the above supplies. (c)Made sales of $1,432, all on account. (d)Received $995 from customers in payment of their accounts. (e)Purchased capital asset for cash, $2,635. (f)Recorded depreciation of building for period used, $710.

Answers: 1

Show answers

Answers

Answer from: Michcardwell8570

Effects of Transactions on Cash and Net Income:

Cash Net Income

(a) Purchased $104 of supplies for cash. -$104 $0

(b) Recorded an adjusting entry to record use

of $40 of the above supplies. $0 -$40

(d) Received $995 from customers in payment

of their accounts. $995 $0

(e) Purchased capital asset for cash, $2,635. -$2,635 $0

(f) Recorded depreciation of building for period

used, $710. $0 -$710

Explanation:

a) Data and Analysis:

a. Supplies $104 Cash $104

b. Supplies Expense $40 Supplies $40

c. Accounts receivable $1,432 Sales revenue $1,432

d. Cash $995 Accounts receivable $995

e. Capital asset $2,635 Cash $2,635

f. Depreciation Expense $710 Accumulated Depreciation $710

b) Only transactions that affect Cash have cash effects. Transactions that affect net income are either revenue or expenses. All other transactions that do not affect cash or net income are analyzed according to their basic effect on the accounting equation of assets = liabilities + equity.

Answer from: Quest

Cancer is the uncontrolled growth and division of cells that is often prevented by cell-cycle checkpoints that monitor for dna damage or spindle fiber failure and stop the .. cancer is theuncontrolled growth and division of cells that is caused by un-repaired..

Answer from: Quest

What’s the question exactly? i’d love to ! : )

Another question on Business

Business, 21.06.2019 20:30

Goods and services that can be used for the same purpose are and goods and services that are used together are

Answers: 1

Answer

Business, 22.06.2019 04:40

What is ur favorite song and by who i know dis is a random question

Answers: 2

Answer

Business, 22.06.2019 06:50

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500

Answers: 3

Answer

Business, 22.06.2019 10:00

Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?

Answers: 3

Answer

You know the right answer?

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that...

Questions