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Indicate on the chart, below, which of the following balance sheet and income statement categories are affected by the transactions: assets (A), liabilities (L),
Indicate on the chart, below, which of the following balance sheet and income statement categories are affected by the transactions: assets (A), liabilities (L), equity (E), gross profit (GP), operating income (OI), and net income (NI). Ignore the impact of income taxes. Balance sheet Income statement Transaction A L E GP NI Example: Earned and received +233 0 +233 0 0 +233 $233 in interest income. 1) Recognized $213 of prepaid expenses as sales and marketing expense in the period. 2) Recognized $2,745 in revenue for goods sold. Payment had previously been received for the goods. 3) Sold inventory costing $8,111 for $10,777. Payment is due in three months. The inventory had been paid for previously. 4) Accrued general and administrative expenses amounting to $2,133. 5) Sold business management services for $14,545 in accounts receivable due in six months and paid $13,082 in cash to the consultants that provided the services.
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