Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $18,000 of services on account, and (2) he purchased $7,000 of supplies on account. There were $950 of supplies on hand as of December 31, Year 1. Exercise 13-10A (Algo) Part c c. Show the above transactions in a horizontal statements model.. Note: 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 require input. Number a1. a2 b. Balance Assets Accounts Receivable CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement + Supplies =Liabilities Accounts Payable = + Stockholders' Equity Common Retained Stock Earnings + + Revenue Net Expense = Income Statement of Cash Flows 9 Part 3 of 3 0.49 points eBook Required information Exercise 13-10A (Algo) 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 $18,000 of services on account, and (2) he purchased $7,000 of supplies on account. There were $950 of supplies on hand as of December 31, Year 1. Exercise 13-10A (Algo) Part d d. Explain why the amounts of net income and net cash flow from operating activities differ. Net Cash Flow from Operating Activities is Net income is of revenue was earned on account, but none was collected; of supplies were used, but none were paid for. 10 0.49 points eBook Exercise 13-12A (Algo) Using a T-account to determine cash flow from operating activities LO 13-1 River Company began the accounting period with a $75,500 debit balance in its Accounts Receivable account. During the accounting period, River Company earned revenue on account of $312,100. The ending Accounts Receivable balance was $58,200. Required Based on this information alone, determine the amount of cash inflow from operating activities during the accounting period. (Hint: Use a T-account for Accounts Receivable. Enter the debits and credits for the given events, and solve for the missing amount.) Cash inflow from operating activities 1 0.49 points eBook Exercise 13-1A (Static) Matching debit and credit terminology with accounting equation elements LO 13-1 Required Complete the following table by indicating whether a debit or credit is used to increase or decrease the balance of accounts belonging to each category of financial statement elements. The appropriate debit or credit terminology has been identified for the first category (assets) as an example. Category of Elements Assets Liabilities Stockholders' Equity Used to Increase This Element Debit Used to Decrease This Element Credit +F