Question - Sye Chase started and operated a small family architectural firm in 2016. The firm was affected by 2 events: (1) Chase provided $25,000.00 of services on account, and (2) he purchased $2800.00 of supplies on account. There were $250.00 of supplies on hand as of December 21, 2016.
Required:
a. Open T-accounts and record the two transactions on the accounts.
b. Record the required year-end adjusting entry to reflect the use of suppies.
c. Record the preceding transactions in a horizontal statements model.
d. Explain why the amounts of net income and net cash flow from operating activities differ.