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.You do not need to enter amounts.Enter only one letter for each element.
-On December 31,2016,Warren Co.accrued $625 of interest on a $25,000 note it had issued from the National Bank on July 1,2016.The principal and interest on the note are to be repaid on June 30,2017.How would Warrens's year-end adjustment to accrue the interest on the loan affect its financial statements for 2016?
Definitions:
Surplus Amount
The excess of quantity supplied over quantity demanded in a market, often leading to lower prices.
Inferior Good
A type of good for which demand decreases as the income of the consumer increases.
Income Increases
The rise in the amount of money received, typically on a regular basis, for work or through investments.
Law of Demand
A principle stating that, all else being equal, as the price of a good or service increases, the quantity demanded decreases, and vice versa.
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