Indicate How Each Event Affects the Financial Statements

question 66

Essay

Indicate how each event affects the financial statements. 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 = I Decrease = D Not Affected = NACharles Company paid Jason Hewitt for work he performed as an independent contractor. The amount owed had not been previously accrued.

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Definitions:

Implied Contract

A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).

Enforce In Court

The act of seeking judicial action to ensure compliance or to execute a legal right, often involving litigation.

Fully Performed

Refers to a scenario where all terms and obligations of a contract have been met by all parties involved.

Executory

Describing a contract that has not yet been fully performed or completed by all involved parties.