Identify The Effect, If Any, That Each Of The Following Transactions Would Have Upon Cash And Net Income

Transactions that affect earnings do not necessarily affect cash.
(a)Purchased $100 of supplies for cash. -$100(cash)$0(net income)(The first transaction has been completed as an example.)
(b)Recorded an adjusting entry to record use of $40 of the
above supplies.
(c)Made sales of $1,300, all on account.
(d)Received $800 from customers in payment of their accounts.
(e)Purchased equipment for cash, $2,500.
(f)Recorded depreciation of building for period used, $600
Posted: May 10, 2013

Best Answer

(b) Recorded an adjusting entry to record use of $40 of the above supplies.
$0(cash) -$40(net income)
(c) Made sales of $1,300, all on account.
$0(cash) +$1,300(net income)
(d) Received $800 from customers in payment of their accounts.
+$800(cash) $0(net income)
(e) Purchased equipment for cash, $2,500.
-$2,500(cash) $0(net income)
(f) Recorded depreciation of building for period used, $600
$0(cash) -$600(net income)

Related Questions

1+
answers
Somebody Good At Business Finance's Help Please?
Question; identify how ways of recording financial transactions help prevent fraud in a business organisation I have to lay it out like ...
May 29, 2013
1+
answers
Accounting! Please Check My Work!?
MC Qu. 88 Which of the following transactions would be... Which of the following transactions would be reported within the investing section of the cash flow s...
May 19, 2013
1+
answers
Reasons Why Cash Is King For Businesses & Individuals?
Whether it is managing your own personal finance or launching your first small business, cash is king. Understanding the critical role of cash reserves in perso...
May 10, 2013
1+
answers
Need Help Preparing Journal Entries For Merchandising Transactions?
A)Recording Merchandise Transactions Myth Company is a large wholesaler of home furnishing products. The company engaged in the following transactions during...
June 14, 2013
1+
answers
What Are Operating Activities?
7. What are operating activities? (Select the best answer.) (Points : 1) Revenue and expenses involved in running a business Cash transactions r...
June 14, 2013
1+
answers
How Sales Transactions Effect Both Balance Sheet And Statement Of Comprehensive Income
Just needing to know how sales transactions effect both Balance Sheet and Statement of Comprehensive income, and if there are any sources as this is for an essa...
May 10, 2013
1+
answers
Finance Or Not To Finance?
Can someone help me understand the logic to this. Several people at work tell me they will never finance anything. That they will basically pay all up front. H...
May 10, 2013
3+
answers
Please Me With Personal Finance I Will Do Anything Ill Give A Lot Of Points If You Do Please ! D:
A. Money put aside for unexpected expenses or events B. A business with a limited operating history C. A type of budget for spending and saying future income ...
May 10, 2013
1+
answers
How Do You Journalise These Transactions?
I cannot seem to do half of these transaction im getting the credit and debit mixed up.... Shiny Car Wash Pty Ltd was opened on 1 February by Jack Ford. Duri...
May 29, 2013
6+
answers
Is Income Income? Or Does Income Source Matter?
I work for a company and run my own business on the side. My business (LLC) spends more than it makes and I finance it through the personal income I make throug...
May 20, 2013
2+
answers
Tax Question: All My Income Is Cash?
I am a "free lance tutor" and get paid in cash. I earn about $1,000 in cash a month from tutoring one on one. I am also a full time student in college (if th...
May 10, 2013
1+
answers
Can I Use Reward Miles On A Business Credit Card For A Personal Trip?
I'm working on starting my own little business and I got a business credit card but the card has air miles for rewards. Problem is there is no need to ever tra...
May 10, 2013
2+
answers
Quick Personal Finance Questions?
9. A receipt is _______________. (Select the best answer.) (Points : 1) A book for recording transactions A record of a product that hasnâ€...
June 14, 2013
1+
answers
Accounting Help Please!?
1.Accounts receivable arising from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the...
June 14, 2013
1+
answers
Can Someone Do This So I Can See If I Got The Same Answers :] Thanks [accounting Help
"PR 4-6A Complete accounting cycle For the past several years, Shane Banovich has operated a part-time consulting business from his home. As of October 1, 201...
May 10, 2013

Page Loaded:0.04