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 76

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
On December 31, 2014, Spencer Corporation had a balance of $20,000 on a line of credit with Mid-Rivers Bank. Spencer made a payment of $11,200, which included $10,000 on the principal and $1,200 interest. Show the effects of this transaction on Spencer's financial statements. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Separateness

The state or condition of being distinct, individual, or not connected to others.

First-generation Immigrants

Individuals who have moved from their country of birth to reside in a different country, becoming the first in their family to do so.

Feel "American"

The subjective sense of identity or belonging to the United States, often influenced by cultural assimilation or personal identification with American values and norms.

Social Networks

Platforms or systems that enable individuals to connect, interact, and share information with others online.