Indicate How Each Event Affects the Horizontal Financial Statements Model

question 177

Essay

Indicate how each event affects the horizontal financial statements model. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts.Increase = I Decrease = D Not Affected = NAKelly Company sells goods to customers with a three-year warranty. During Year 1, Kelly sold $800,000 of goods. On December 31, Year 1, Kelly made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the year. During Year 2, Kelly paid $4,000 cash to satisfy warranty claims. Show the effects of the Year 2 cash payments to satisfy warranty claims.

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Definitions:

Orchids

A diverse and widespread family of flowering plants with complex, often colorful and fragrant flowers.

Aquaporins

A family of membrane proteins that facilitate water movement through cell membranes, critical for cellular water balance.

Endodermal Cells

Cells that make up the endoderm, the innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.

Lipid

A group of naturally occurring molecules including fats, oils, and waxes that are insoluble in water but soluble in nonpolar solvents.