er 4 Homework Book D ferences On January 10, 2022, the first day of the spring semester, the cafeteria of The Defiance College purchased for cash enough paper napkins to last the entire 16-week semester. The total cost was $4,900. Required: 1. Prepare the Horizontal model and Journal entry for each of the following transactions. a. The purchase of the paper napkins, assuming that the purchase was Initially recorded as an expense. b. At January 31, It was estimated that the cost of the paper napkins used during the first three weeks of the semester totaled $950. c. The purchase of the paper napkins, assuming that the purchase was initially recorded as an asset. d. At January 31 if the Initial purchase had been recorded as in c. Indicate the financial statement effect 2. Consider the effects that entries a and b would have on the following: a. Income statement for the month of January? b. Balance sheet at January 31? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 1-a. Prepare the Horizontal model for each of the following transactions. a. The purchase of the paper napkins, assuming that the purchase was initially recorded as an expense. b. At January 31, it was estimated that the cost of the paper napkins used during the first three weeks of the semester totaled $950. c. The purchase of the paper napkins, assuming that the purchase was initially recorded as an asset. d. At January 31 if the initial purchase had been recorded as in c. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets a Cash-4.900 Balance Sheet Liabilities Cash +4.900 Stockholders Equity Net income Income Statement Revenues 4,900 c Supplies +4,900 Supplies+3,960 Cash-4,900 d Supplies-950 Expenses Supplies expense +4,900 Supples expense-3.950 Supplies expense-950