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 23

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
The Chandler Company purchased equipment for $16,000 on January 1, 2010. The equipment had an estimated useful life of four years and an estimated salvage value of $4,000. At the beginning of 2014, the equipment was sold for $7,000. Show how the sale affected the financial statements for 2014. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues and gains} & \text { Expenses and losses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Population Growth

The growth of a population's size over a period.

Global Resource Demand

The worldwide need or desire for resources such as energy, minerals, and agricultural products, driven by population growth and economic development.

Technological Progress

Advances in technology that improve the efficiency of production processes, leading to higher output with the same or lower input levels.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime in a specific population or country.