Accrual- and Cash-Basis Accounting}

The following are several transactions for Halpin Advertising Company.

a. Purchased \(\$ 1,000\) of supplies.

b. Sold \(\$ 5,000\) of advertising services, on account, to customers.

c. Used \(\$ 250\) of supplies.

d. Collected \(\$ 3,000\) from customers in payment of their accounts.

e. Purchased equipment for \(\$ 10,000\) cash.

f. Recorded \(\$ 500\) depreciation on the equipment for the current period.
\section*{Required:}
Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting.
\section*{OBJECTIVE (2) Brief Exercise