Indicate How Each Event Affects the Financial Statements

question 82

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 September 1, Year 1, Diaz Company loaned $10,000 to Ace Company. Show the effect of this transaction on Diaz's financial statements.

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