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in 21 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 year-end financial statements. Identify the direction of change (increase, decrease, or NA) and the amount of the change. 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. (Not all cells require entry. Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) a. Paid $2,500 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,500 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment was $250. c. Provided services for $7,200 cash. d. Collected $10,800 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 $4,100 1. Sold land that cost $17,900 for $17,900 cash. 9. Acquired $48,500 cash from the issue of common stock. h. Earned $10,500 of revenue on account. Collected $9.450 cash from accounts receivable, 1. Pald cash operating expenses of $1,850. in 4 NA O % 0 Net Income Cash Flows from Event/ Operating Activities Direction Amount Direction Amount Adjustment of of of of Change Change Change Change a. NA Decrease $ 2,500 Adj. Decrease $ 625 b NA 0 Increase 675 X Adj. Decrease 925 NA 0 C Increase 7,200 Increase 7,200 Adj. NA 0 NA 0 d. NA 0 Increase 10,800 Adj. Increase 7,200 NA 0 e. Decrease 4,100 NA 0 Adj. 0 NA 0 f. NA 0 NA 0 Adj NA 0 NA 0 9. NA NA Adj. NA 0 h. Increase 10,500 NA 0 X Adj. NA 0 Increase 9,450 i. Decrease 1,850 Decrease 1,850 Adj. 0 NA 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 30 NA ooo OO NA > X > NA