1. Identify the effect, if any, that each of these transactions would have upon cash and net income.
(The first transaction is completed as an example.)
| AMOUNTS |
|
| Cash |
Net Income |
ITEM |
| $ (100.00) |
$ - |
(a) Purchased $100 of supplies for cash. |
| |
|
(b) Recorded an adjusting entry to record use of $20 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. |
Answer the following:
Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis.
Describe both bases of accounting and explain the differences.
Attachment:- acc290_wk4_homeworktemplates.xlsx