XACC 290 WK 4 DAY 7 1 answer below »

Complete Exercise BE4-1.

Complete Problems 4-2A & 4-3A.

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.

Submit as either a Microsoft Excel or Microsoft Word document 4-1
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.
BE 4-1
Brief Exercises
BE4-1Transactions that affect earnings do not necessarily affect cash. Identify the effect,
if any, that each of the following transactions would have upon cash and net income.
The first transaction has been completed as an example.

Cash Net
Income
———— ————
-$100 $0

(a) Purchased $100 of supplies for cash. $100 $ 0
(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.

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