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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

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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 or decrease) and the amount of the change. If there is no change, leave the cell blank. 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 will require entry. Do not round intermediate calculations.) a. Paid $2,400 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,250 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $7,500 cash. d. Collected $10,700 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 $4,000 f. Sold land that cost $17,700 for $17,700 cash. g. Acquired $50,000 cash from the issue of common stock h. Earned $11,800 of revenue on account. Collected $10,620 cash from accounts receivable. i. Paid cash for other operating expenses of $1,250. Net Income Eventi Adjustment Direction of Amount of Change Change Cash Flows from Operating Activities Direction of Amount of Change Change Decrease $ 2,400 a. Adj. Decrease 600 b. Decrease 850 Adj. 950 Decrease Increase C. 7,500 Increase 7,500 Adj. d. Increase 10,700 Adj. Increase e. Decrease 4,000 Adj. f. Adj. g. Adj. h. Increase 11,800 Increase 10,620 Adj. i. Decrease 1,250 Decrease 1,250 Adj

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