Effects on balance sheet and income statement
Question: Effects on balance sheet and income statement
Effects on balance sheet and income statement:
Balance sheet | Income statement | ||||||
Transection | A | L | E | GP | OI | NI | |
1) | Example: earned and received $233 in interest income. | +233 | 0 | +233 | 0 | 0 | +233 |
2) | Recognized $214 of prepaid expenses as sales and marketing expense in the period. | ||||||
3) | Recognized $2,745 in revenue for goods sold. Payment had previously been received for the goods | ||||||
4) | Sold inventory costing $8,111 for $10,777. Payment is due in three months. The inventory had been paid for previously. | ||||||
5) | Accrued general and administrative expenses amounting to $2,133. | ||||||
Sold business management services for $14,545 in accounts receivable due in six months and paid $13,082 in cash to the consultants that provided the services. |