Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $19,500 of services on account, and (2) he purchased $6,800 of supplies on account. There were $850 of supplies on hand as of December 31, Year 1. c. Show the above transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC for net change in cash. Not all cells require input. Number a1. a2. b. CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Assets Liabilities Stockholders' Equity Supplies Accounts Payable + Common Stock + Retained Earnings Revenue + + Accounts Receivable + + + Balance + + + Income Statement Statement of Cash Flows Expense = Net Income

Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $19,500 of services on account, and (2) he purchased $6,800 of supplies on account. There were $850 of supplies on hand as of December 31, Year 1. c. Show the above transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC for net change in cash. Not all cells require input. Number a1. a2. b. CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Assets Liabilities Stockholders' Equity Supplies Accounts Payable + Common Stock + Retained Earnings Revenue + + Accounts Receivable + + + Balance + + + Income Statement Statement of Cash Flows Expense = Net Income

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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