I am taking principles of accounting and I am unsure how this needs to be charte

Question

I am taking principles of accounting and I am unsure how this needs to be charted as or worked out. Please help.

Transcations that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transcations would have upon cash and net income. the first transctaion has been completed as an example Cash Net Income (a) ($100) $0 (b) (c) (d) (e) $2,500 $0 (f) (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.

Explanation / Answer

(a) just (104) .. no 0

(b) doesn't effect cash

(c) 1432 <-- you're receivables go up.. not cash

(d) 995 <---cash went up

(e) (2635) <--- cash went down because you purchased an item

(f) 710 <--you add depreciation

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