Indicate How Each Event Affects the Elements of Financial Statements

question 46

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.Use only one letter for each element.You do not need to enter amounts.

-On December 31,2016,Briand Co.paid cash for interest on bonds it had issued on January 1,2016 at 98,and amortized part of the discount on bonds.Briand Co.uses the straight-line method of amortizing bond discounts.Indicate the effects of the amortization of the discount only.

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Definitions:

External Intercostal Muscles

The External Intercostal Muscles are a group of muscles found between the ribs that aid in the process of inhalation by elevating the ribcage, expanding the thoracic cavity.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae of each lung, involved in respiratory mechanics.

Parietal Pleura

Serous membrane that lines the different parts of the wall of the pleural cavity.

Mediastinum

The central compartment of the thoracic cavity surrounded by loose connective tissue, containing the heart, esophagus, trachea, major blood vessels, and other structures.