information (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 $23,600 of services on account, and (2) he purchased $5,200 of supplies on account. There were $750 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 "el" for closing entries. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Accounts Receivable Supplies Beg. Bal Beg. Bal End. Bal 0 End. Bal 0 Accounts Payable Retained Earnings Bog. Bal Bog. Bal End. Bat. End, Bal 0 HI 3 Accounts Receivable Beg. Bal Supplies Beg. Bal End. Bal. End. Bal. Accounts Payable Beg. Bal. Retained Earnings -S Beg. Bal. End. Bal. End. Bal 0 Service Revenue Supplies Expense Bog. Bal Bog. Bal End. Bal. End. Bal. 0 View transaction list Journal entry worksheet Record the closure of service revenue. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Record entry Clear entry View general Journal CHASE ARCHITECTURAL SERVICES Post-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit Totals 0 $ 0 Required information [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 $23,600 of services on account, and (2) he purchased $5,200 of supplies on account. There were $750 of supplies on hand as of December 31, Year 1. c. Show the above transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows 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.) CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement - Liabilities Stockholders' Equity Accounts Common Retained Payable Stock Earnings Revenue Expense - Net Income No Assets Statement of Cash Flows Accounts Rocolvable Supplies a1 + a2 + b. 01 + Bal OH ol 0 0 ol 0 Required information [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 $23,600 of services on account, and (2) he purchased $5,200 of supplies on account. There were $750 of supplies on hand as of December 31, Year 1. d. Explain why the amounts of net income and net cash flow from operating activities differ. Net income is Net Cash Flow from Operating Activities is of revenue was earned on account, but none was collected: of supplies were used, but none were paid for
