18 Jan

Effects on balance sheet and income statement

by jagguarpaw On: Finance - 0 Comment

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.

Tags: Effects on balance sheet, Effects on balance sheet and income, Effects on balance sheet and income statement Share

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