Brief Exercise 3-29 Accrual- and Cash-Basis Accounting

The following are several transactions for Halpin Advertising Company.

Purchased $1,000 of supplies.

Sold $5,000 of advertising services, on account, to customers.

Used $250 of supplies.

Collected $3,000 from customers in payment of their accounts.

Purchased equipment for $10,000 cash.

Recorded $500 depreciation on the equipment for the current period.

Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting. If your answer is zero, enter "0". Enter negative values as negative numbers.