Indicate How Each Event Affects the Elements of Financial Statements

question 3

Essay

Indicate how each event affects the elements of financial statements. 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. Enter only one letter for each element.Increase = I Decrease = D Not Affected = NAIn preparing the bank reconciliation for Heath Company, an employee discovered that the bank had collected one of the company's notes receivable in the amount of $20,000 and had deposited this amount in the company's account at the bank. This amount does not include interest.

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Definitions:

Capital Expenditures Budget

A plan for the funds a company intends to spend on major physical assets, aimed at future benefits or investments.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used to ensure that a company can meet its cash needs.

Factory Overhead Cost

This refers to the indirect manufacturing costs that are not directly tied to the production of a specific product, such as the cost of electricity for the manufacturing plant.

Supervisor Salaries

The compensation paid to individuals who are responsible for overseeing and managing teams or departments within an organization.