Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$

question 150

Short Answer

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Calvert Company sold merchandise for $1,700 cash and collected from the customer sales tax at a rate of 5%. In answering, disregard the effect of cost of goods sold. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Overturn

To upset or reverse a decision, situation, or setup, often dramatically.

Profundal Zone

A deep zone of a body of water where sunlight does not reach, typically found in lakes and often lacking in photosynthetic life.

Lake

a large body of water surrounded by land, usually freshwater, and larger and deeper than a pond.

Penetrate

To enter or force a way into or through something; to pierce.