3-10A

Sye Chase started and operateed a small family architectual firm in 2016. The firm was affected by two events (1). Chase provided $25,000 of services on account; and (2). he purchased $2800 of supplies on account. There were $250 of supplies on hand Dec. 31, 2016.

Required:

A. Open T-accounts and record the 2 transactions in the accounts.

B. Record the requited year end adjusting entry to reflect the use of supplies.

C. Record the preceding transactions in a horizontal statement model.

D. Explain why the amounts of net income and net cash flow from activities differ.

E. record and post the required closing entries and prepare a post closing trial balance.