PA 2. LO 4.1To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income.

A: paid balance due for accounts payable $6,900

B: charged clients for legal services provided $5,200

C: purchased supplies on account $1,750

D: collected legal service fees from clients for current month $3,700

E: issued stock in exchange for a note payable $10,000