Indicate How Each Event Affects the Financial Statements Model

question 111

Essay

Indicate how each event affects the financial statements model. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. 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.Increase = I Decrease = D Not Affected = NAJennings Company makes an adjusting entry to recognize $500 of previously recorded unearned revenue that it has now been earned by providing services to its client during the period.

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Definitions:

Reactive Intermediate

A short-lived species formed during the course of a chemical reaction which cannot be isolated under normal conditions.

H+

The proton, often representing an acid in chemistry, capable of forming hydronium ions (H3O+) in solution.

Reactive Intermediate

Highly reactive species formed transiently in the course of a chemical reaction.

Hydroxide

A negatively charged ion (OH-) consisting of oxygen and hydrogen.