Question

Indicate how each event affects the elements of financial statements. Use the following letters to record vour answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)

Increase=1 Decrease =D Not Affected = NA 1) Belvedere Company recognized $2,500 of depreciation expense on a delivery van Staat of Cash Liabilities Stk. Equity Revenues Expenses Net Income Flows 2) The Fisher Company paid $28,000 to improve the quality of a manufacturing machine. Stent of Cash Net Income Flows Assets Liabilities Stk. Equity Revenues Expenses 3) The Greer Company purchased equipment on account on January 1, Year 1. Assets Stunt of Cash Liabilities Stk. Equity Revenues Expenses Net Income Flows

Answer 1

Stmt. of Cash Flows Stk. Equity Expenses Assets D Liabilities NA Revenues NA Net Income D NA Stk. Equity Assets NA Liabilities NA Revenues NA Expenses NA Net Income NA Stmt. of Cash Flows D Ι ΝΑ _aut .. og er Assets Liabilities Stk. Equity NA Revenues NA Expenses NA Net Income NA Stmt. of Cash Flows NA