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Indicate How Each Event Affects the Horizontal Financial Statements Model

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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 = IDecrease = DNot Affected = NAThe Baltimore Company acquired the Chesapeake Company for $650,000 cash. Chesapeake's assets had been appraised at $660,000. At the time of sale Chesapeake's accounting records showed total assets of $590,000, liabilities of $180,000 and stockholders' equity of $410,000. How would the purchase affect Baltimore's financial statements?
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 = IDecrease = DNot Affected = NAThe Baltimore Company acquired the Chesapeake Company for $650,000 cash. Chesapeake's assets had been appraised at $660,000. At the time of sale Chesapeake's accounting records showed total assets of $590,000, liabilities of $180,000 and stockholders' equity of $410,000. How would the purchase affect Baltimore's financial statements?

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Definitions:

Multilevel List Item

An element in a tiered list that allows for the organization of information in hierarchical structures.

Indent

The space added before the beginning of a paragraph or line of text, often used to differentiate paragraphs or create a hierarchical structure in documents.

Tab Stop

A pre-determined stopping point within a document or field for aligning and formatting text.

Margins

The blank spaces that border the top, bottom, and sides of a document page, which can be adjusted to control the document's layout.

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