Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $21,200 of services on account, and (2) he purchased $6,500 of supplies on account. There were $700 of supplies on hand as of December 31, Year 1.

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Required information Exercise 13-10A (Algo) Recording supplies and identifying their effect on financial statements LO 13-1, 133,134 [The following information applies to the questions displayed below] Sye Chase started and operated a small family architectural firm in Year 1 . The firm was affected by two events: (1) Chase provided $21,200 of services on account, and (2) he purchased $6,500 of supplies on account. There were $700 of supplies on hand as of December 31, Year 1 . Required a. b. \& e. Record the two transactions in the T-accounts. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance. (Select "a1, a2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) c. Show the above transactions in a horizontal statements model. (Enter any decreases to account balances and cash outhlows With a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC for net change in cash. Not all cells require input.) d. Explain why the amounts of net income and net cash flow from operating activities differ