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E3-8 (Algo) Determining Accounting Equation Effects and Net Income (LO 3-2, LO 3-3) The following transactions occurred during a recent year, a. Paid wages of $750 for the current period example) Borrowed $3,750 cash from local bank using a short-term note c Purchased $1.500 of equipment on credit. d Earned $300 of sales revenue, collected cash e Received $600 of utilities services, on credit Earned $1,280 of service revenue, on credit Paid $225 cash on account to a supplier incurred $55 of travel expenses:paid cash Esmed $300 of service revenue, collected half in cash, with balance on credit. Collected $85 cash from customers on account * Incurred $240 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect * for increase and for decrease) of each transaction under the accrual basis Include revenues and expenses as subcategories of stockholders equity, as shown for the first transaction, which is provided as an example, 2. Determine the company's preliminary net income. Complete this question by entering your answers in the tabs below. Required: Required 2 For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minussion 2 Determine the company Complete this question by entering your answers in the tabs below. ured2 For each of the transactions, complete the following table, indicating the account amount and direction of the effect (for increase and for decrease of an transaction under the accrual basis include revenues and expenses as subcategories of stod holders' equity, as shown for the first transaction, which is provided as an exampleterwys to Assets, Lates, and stockholder's fouty with a minus) Car (70 Sind Wigs Expo 750 D . . 3 . Maquired) RECEIVE SOUSSUTVICOS OCCIS Earned $1.280 of service revenue, on credit. a Paid $225 cash on account to a supplier. Incurred $55 of travel expenses, paid cash Earned $300 of service revenue: collected half in cash with balance on credit X Collected $85 cash from customers an account * Incurred $240 of advertising costs: paldhall in cash, with balance on credit Required: 1. For each of the transactions, complete the following table, indicating the account, amount and direction of the effect for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders equity, as shown for the first transaction, which is provided as an example, 2. Determine the company preliminary net income Complete this question by entering your answers in the tabs below. Required 1 Required Determine the company's preliminary net income. Preliminary Not Income Required 1
