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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 $2,500 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 $250. c. Provided services for $7,600 cash, d. Collected $10,300 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 $4,600. f. Sold land that cost $19,000 for $19,000 cash. g. Acquired $54,000 cash from the issue of common stock. h. Earned $10,200 of revenue on account. Collected $9,180 cash from accounts receivable. 1. Pald cash for other operating expenses of $1,600. Cash Flows from Net Income Event Operating Activities Adjustment Direction of Amount of Direction of Amount of Change Change Change Change a Decrease $ 2.500 Adj Decrease 625 b. Adj rou CASH IUI VUCI percury capenses VII, Cash Flows from Net Income Event Operating Activities Adjustment Direction of Amount of Direction of Amount of Change Change Change Change a. Decrease $ 2,500 Adj. Decrease 625 b. Adj. C. Adj d. Adj. e. Adj. f. Adi 9. Adj. h. Adi. Adj

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