Exercise 2-27A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 28 Required Explain how each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the yeat-end financial statements, Identify the direction of change (increase or decrease) and the amount of the change. If there is no change, leave the cell blank. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjusting entry, record only the effects of the event. (Do not round intermediate colculations. Not all cells require entry.) a. Paid $2.300 cash on October 1 to purchase a one-year insurance policy. b. Purcltased $1,200 of supplies on account. Paid $900 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $350 c. Provided services for $7,000 cash d. Collected $10,000 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $3.200 f. Sold land that cost $18,700 for $18,700 cash. 9. Acquired $52,000 cash from the issue of common stock. h. Eamed $12,900 of revenue on account, Collected $11,610 cash from accounts recelvable i. Paid cash operating expenses of $1,550. \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{c} Event/ \\ Adjustment \end{tabular}} & \multicolumn{2}{|c|}{ Net Income } & \multicolumn{3}{|c|}{ Operating Activities } \\ \hline & \multirow[t]{2}{*}{\begin{tabular}{l} Direction of \\ Change \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{c} Amount of \\ Change \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} Direction of \\ Change \\ Decrease \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Amount of \\ Change \end{tabular}} \\ \hline a & & & & $ & 2,300 \\ \hline Adj & Decrease & 575 & & & \\ \hline \multicolumn{6}{|l|}{ b. } \\ \hline \multicolumn{6}{|l|}{ Adi } \\ \hline \multicolumn{6}{|l|}{ c. } \\ \hline \multicolumn{6}{|l|}{ Adj } \\ \hline \multicolumn{6}{|l|}{ d } \\ \hline \multicolumn{6}{|l|}{ Adj. } \\ \hline \multicolumn{6}{|l|}{ e. } \\ \hline \multicolumn{6}{|l|}{ Adj. } \\ \hline \multicolumn{6}{|l|}{ f. } \\ \hline \multicolumn{6}{|l|}{ Adj } \\ \hline \multicolumn{6}{|l|}{Adg} \\ \hline \multicolumn{6}{|l|}{ Adj } \\ \hline \multicolumn{6}{|l|}{Adjh} \\ \hline \multicolumn{6}{|l|}{ Adj. } \\ \hline \multicolumn{6}{|l|}{AdI1} \\ \hline Ad) & & & & & \\ \hline \end{tabular}