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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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