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 require entry. Do not round Intermediate calculations.) a. Pald $2.200 cash on October 1 to purchase a one-year Insurance policy. b. Purchased $100 of supples on account. Paid $900 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $8,000 cash. d. Collected $9,600 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 $4,300 f. Sold land that cost $18,000 for $18.100 cash. g. Acquired $50,000 cash from the issue of common stock. h. Earned $11,600 of revenue on account Collected $10,440 cash from accounts recevable. L. Pald cash for other operating expenses of $1.900. Net Income Cash Flows from Even Operating Activities Adjustment Direction of Amount of Direction of Amount of Change Change Change Change Decrease $ 2.200 Adi Decrease 550 b. O Decrease 900 Ad Decrease 800 0 Increase 8.000 grease 8.000 Adj 0 0 O nas 9.500 Ad Increase 6,400 . Ad Decrease 4.300 0 Increase 0 Ad Increase 0 Ad 0 0 Increase 11.000 0 Ad rose 10.440 Decrease 1.000 Deco 1.900 Ad - 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 require entry. Do not round Intermediate calculations.) a. Pald $2,200 cash on October 1 to purchase a one-year Insurance policy b. Purchased $1,100 of supplies on account. Peld $900 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300 c. Provided services for $8,000 cash. d. Collected $9,600 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 $4,300. Sold land that cost $18,100 for $18,100 cash. g. Acquired $50,000 cash from the issue of common stock. h. Earned $11,600 of revenue on account Collected $10,440 cash from accounts recevable. L. Pald cash for other operating expenses of $1,900 0.600 Net Income Cash Flows from Evanu Operating Activities Adjustment Direction of Amount of Direction of Amount of Change Change Change Change a Decrease $ 2.200 Ad Decrease 550 O Decrease 200 Adi Decrease 800 0 c Increase 8,000 increase 8,000 Ad 0 0 d O horase Ad increase 6.400 0 . o 0 Ad) Decrease 4,300 0 1 Increase 0 0 Adi 0 9 Increase 0 Ad 0 D Increase 11,000 0 Adi O increase 10.440 Decrease 1.000 Decrease 1,900 Ad 0 0