Indicate How Each Event Affects the Horizontal Financial Statements Model

question 36

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 = IDecrease = DNot Affected = NAOn November 1, Year 1, Gable Company accepted a credit card as payment for $1,500 of services rendered to one of its customers. Assume the credit card fee of 3% is recorded on the date of the sale. Show the effect of this transaction on Gable's financial statements.

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Definitions:

Machinery

Machines collectively, especially those used in production or some form of labor.

Acquisitions

The act of obtaining control of another company or its assets through purchase, which can facilitate growth and expand market share.

Mergers

The process by which two or more companies combine into one entity, typically to achieve strategic objectives, gain market share, or improve efficiency.

Subsidiaries

Companies that are owned or controlled by another larger parent company, often operating under its own name and management.