Transactions that affect earnings do not necessarily affect cash.

Identify the effect, if any, that each of the following transactions would have upon cash and retained earnings. The first transaction has been completed as an example.

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(a) Purchased supplies for cash. (b) Recorded an adjusting entry to record use of $50 of the above supplies. (c) Made sales of $1,000, all on account. (d) Received $800 from customers in payment of their accounts. (e) Purchased capital asset for cash, $2,500. (f) Recorded depreciation of building for period used, $1,000. Cash Retained Earnings $-100 $ 0