Indicate How Each Event Affects the Elements of Financial Statements

question 37

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 (such as an asset exchange event), record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts. Assume that Whetzel Company uses a perpetual inventory system.Increase = I Decrease = D Not Affected = NAWhetzel Company discovered that a recent shipment of merchandise it had purchased was not of the same quality it had expected. The seller agreed to grant Whetzel an allowance of $250. Whetzel had not yet paid the amount owed on the shipment.

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Definitions:

Investment

The action or process of investing money for profit or material result.

Altruism

The selfless concern for the well-being of others without expecting anything in return.

Hegel

A German philosopher known for his dialectical method and the concept of the Absolute Spirit, emphasizing the historical development of consciousness and reality.

Spirit

In Hegel, the all-embracing idea that includes the entire universe and all of humanity. More generally, spirit means enthusiasm (as in “team spirit” or “when the spirit moves me”); in religion, spirit usually refers to an intangible being, such as God or, sometimes, the human soul.