Indicate How Each Event Affects the Horizontal Financial Statements Model

question 29

Essay

Indicate how each event affects the horizontal financial statements model. Use the following letters to record your answer in the box shown below each element. 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 = NA
Stan's Surf Shack purchased 5 surfboards for $200 each. Later it purchased 2 more surfboards for $250 each. Stan's uses the perpetual inventory system. Assume that 6 surfboards were sold during the period for $350 cash each.
Assume that Stan's Surf Shack purchased the first five surfboards on account. How would the purchase transaction affect its financial statements?

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Definitions:

Agreeableness

A personality trait characterized by attributes such as being kind, sympathetic, cooperative, warm, and considerate.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.

Positive Emotion

Feelings or emotions that evoke a sense of well-being, happiness, or contentment in an individual.

Negative Emotion

Feelings or emotions that are unpleasant or undesirable, such as sadness, anger, fear, or jealousy, which can impact an individual's mental and physical well-being.