Indicate How Each Event Affects the Horizontal Financial Statements Model

question 16

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 September 1, Year 1, Ruiz Company loaned $10,000 to Alpha company. Show the effect of the December 31, Year 1 adjusting entry to accrue interest on Ruiz's financial statements.

---

Definitions:

Collecting Agent

An entity or individual appointed to gather or receive payments or debts on behalf of another party.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership or to approve its terms.

Order Of

Typically refers to a directive issued by a court or a sequence or arrangement of items, actions, or priorities.

Stamped Imprint

A type of mark or impression made on a document or object, often for legal or official purposes, using a stamp.