Supplies, Unearned revenue, and the financial statement model
Ross, Attorney at Law, experienced the following transactions in 2013, the first year of operations:
A Effect of accounting events on the income statement and statement of cash flows.
Explain how each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease, or NA) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjusting entry, record only the effects of the event.