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. | |||||||
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