Required Information Exercise 13-10A Recording supplies and identifying their effect on financial statements LO 13-1, 13-3, 13-4 [The following information applies to the questions displayed below.) Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $16,500 of services on account, and (2) he purchased $7,000 of supplies on account. There were $1,100 of supplies on hand as of December 31, Year 1. Exercise 13-10A Part c. Show the above transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity. FA for financing activity and NC for net change in cash. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank If there is no corresponding input needed.) CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Assets Liabilities + Stockholders' Equity Ravenue Expono - Not Income No Statement of Cash Flows Accounts Receivable Supplies Accounts Payable Common Stock Retained Earnings at 22 b Bol Required information Required a. b. & e. Record the two transactions in the accounts, Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance. (Select "a1, a2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) Accounts Receivable Supplies Beg Bal Beg. Bal End, Bal End. Bal Accounts Payable Retained Earnings Bog Bal Beg Bal End Bal End Bal 0 Service Revenue Supplies Expense Beg Bal Beg Bal End Bal 0 End, Bal ! Required information Exercise 13-10A Recording supplies and identifying their effect on financia [The following information applies to the questions displayed below.) Sye Chase started and operated a small family architectural firm in Year 1. The firm was provided $16,500 of services on account, and (2) he purchased $7,000 of supplies on supplies on hand as of December 31, Year 1. Exercise 13-10A Part d d. Explain why the amounts of net income and net cash flow from operating activities differ. Net income is Net Cash Flow from Operating Activities is of revenue was earned on account, but none was collected; of supplies were used, but none were paid for