Indicate How Each Event Affects the Financial Statements

question 72

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
On November 1, Year 1, Gable Company accepted a credit card as payment for $1,500 of services rendered to one of its customers. The credit card company charges a 3% fee for handling the transaction. Show the effect of this transaction on Gable's financial statements.

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Definitions:

Developing Human Organism

An ongoing process of growth and change in humans, from conception through the entire lifespan.

Fetus

A developing human from approximately the end of the eighth week after conception to the moment of birth.

Conception

The process of becoming pregnant involving the fertilization of an egg by a sperm.

Language Development

The process by which children come to understand and communicate language during early childhood.