Effects on balance sheet and income statement

jagguarpaw January 18, 2017 0 Comments

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.