Indicate How Each Event Affects the Financial Statements

question 58

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 dollar amounts.
Increase = I Decrease = D Not Affected = NA
Garrison Company recognized $4,000 of service revenue earned on account.

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Definitions:

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.

Statute

A written law passed by a legislative body.

Equitable Remedies

Court-imposed solutions based on fairness to resolve a dispute, including injunctions and specific performance.

Developed

Pertains to a state of advancement or growth, often used in the context of societies, technologies, or economies which have reached a high level of sophistication.