Ch 04 - Homework eBook 1. EX.04.03 Purchase-related transactions 2. EX.04.04 The following selected transactions were completed by SUP Co. during August of the current year: Illustrate the effects of each of the transactions on the accounts and financial statements of SUP Co. 3. EX.04.06 If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, 4. EX.04.09 cash outflows, and the income statement effects that reduce net income as negative amounts 5. EX.04.10 Aug. 3. Purchased merchandise on account for $16,700, terms FOB destination, 2/10, n/30. 6. PR.04.01 Balance Sheet Stockholders' Assets Liabilities Equity No Effect _ + Inventory _ = Accounts Payable - V + No Effect Aug. 3 Statement of Cash Flows Income Statement No effect - No effect Aug. 9. Issued debit memorandum for $1,250 ($1,225 net of 2% discount) for merchandise from the August 3 purchase that was kept, but was damaged in shipment. Balance Sheet Assets Liabilities Stockholders' Equity No Effect - V + Inventory - = Accounts Payable - V + No Effect Aug. 9 Statement of Cash Flows Income Statement No effect - V No effect Aug. 10. Purchased merchandise on account, $12,500, terms FOB shipping point, neom. Paid $300 cash to the freight company for delivery of the merchandise. Balance Sheet Stockholders' Assets Liabilities Equity Cash - V + Inventory - = Accounts Payable / + No Effect Aug. 10. Statement of Cash Flows Income Statement Operating No effect Aug. 13. Paid for invoice of August 3, less debit memorandum of August 9 Balance Sheet Stockholders' Assets Liabilities Equity Cash - V + No Effect Accounts Payable - V + No Effect Aug. 13. Statement of Cash Flows Income Statement Operating No effect Aug 31. Paid for invoice of August 10. Balance Sheet Stockholders' Assets Liabilities Equity Cash - V + No Effect - V Accounts Payable - V + No Effect Aug. 31. Statement of Cash Flows Income Statement Operating V No effect Feedback Progress: 6/6 items Check My Work