Indicate How Each Event Affects the Financial Statements

question 59

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, Ruiz Company loaned $10,000 to Alpha Company. Show the effect of the December 31, Year 1 adjustment to accrue interest on Ruiz's financial statements.

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Definitions:

Conj

Short for "conjunction," a part of speech that connects words, phrases, or clauses in a sentence.

Add

To add means to combine or join something with another, resulting in an increase in quantity, number, or significance.

Simp

A slang term used to describe someone who performs excessive sympathy or attention towards another person, typically someone they're interested in, often disregarding their own needs or interests.

Conj

Short for "conjunction," it refers to a logical connector that combines two statements in such a way that the combined statement is true only if both individual statements are true.