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 107

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Quimby Co. sells goods to customers with a three-year warranty. On December 31, 2014, Quimby made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the year. During 2015, Quimby paid $14,500 cash to satisfy warranty claims. Show the effects of the 2014 warranty settlements. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Bradycardia

Slow heart rate.

Auscultatory Gap

A temporary disappearance of sounds heard over the brachial artery when measuring blood pressure; occurs between the systolic and diastolic pressures.

Systolic Pressure

The maximum arterial pressure during contraction of the heart's left ventricle, commonly the top number in a blood pressure reading.

Diastolic Pressure

The lower measurement of blood pressure, indicating the pressure in the arteries when the heart rests between beats.