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.)

Indicate how each event affects the elements of financial statements. Use the following letters to record your 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-I Decrease D Not Affected - NA 10) Stan's purchased the first five surfboards on account Stmt of Cash Liabilities Stk Equity Revenues Expenses Net Income Assets Flows 11) Stan's Surf Shack made the second purchase of two additional surfboards for cash Stmt of Cash Flows Assets Liabilities Stk Equity Revenues Expenses Net Income 12) Stan's sold the six surfboards for cash. The company uses the LIFO inventory cost flow method. (Consider the effects of both parts of this event) Stmt of Cash Flows Liabilities Stk Equity Revenues Expenses Net Income Assets

Answer 1

Solution:

10.

Assets	Liabilities	Stk. Equity	Revenues	Expenses	Net income	Stmt of cash flows
I	I	NA	NA	NA	NA	NA

11.

Assets	Liabilities	Stk. Equity	Revenues	Expenses	Net income	Stmt of cash flows
NA	NA	NA	NA	NA	NA	D

12.

Assets	Liabilities	Stk. Equity	Revenues	Expenses	Net income	Stmt of cash flows
I	NA	I	I	I	I	I