Required How each of the following events or series of events and the related ad

Question

Required How each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash now from operating activuities reporte decrease, or NA) and the amount of the change. Organize your an example. If an event does not have a related adjusting entry, record only the effects of the event. (Do not round Intermediate calculations.) d on the year-end financial statements Identify the direction of change increase answers according to the following table. The first event is recorded as a. Paid $9,000 cash on October 1 to purchase a one-year insurance policy b. Purchased $2.000 of supplies on account. Paid $500 cash on accounts payable. The ending balance in the Supplies account after adjustment, was $300 c. Provided services for $10,000 cash. d. Collected $2,400 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $5.600. t. Sold land that cost $3,000 for $3,000 cash g. Acquired $15,000 cash from the issue of common stock h. Earned $12,000 of revenue on account. Collected $8000 cash from accounts receivable. i. Paid cash operating expenses of $4,500

Explanation / Answer

Net income Cash flow from operating activities Event no Direction of change amount of change Direction of change Amount of change a Decrease **2250 Decrease 9000 b Decrease *1700 Decrease 500 c increase 10000 increase 10000 d increase ***1600 increase 2400 e Decrease 5600 NA NA f NA NA NA NA g NA NA NA NA h increase 12000 increase 8000 i Decrease 4500 Decrease 4500 ** = 9000*3/12 * = 2000-300 =1700 *** = 2400*8/12

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