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 52

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 Borger Company purchased an asset for $20,000 on January 1, 2007. The asset had a zero salvage value and an 8-year estimated useful life. On January 1, 2014 the company spent $2,000 cash on routine repair and maintenance. What effect will recording the 2014 expenditure have on the company's financial statements for the year? $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Buster Keaton

A pioneering American film actor, director, and comedian known for his stoic face and innovative slapstick comedy during the silent film era.

Film Projectionist

A professional responsible for operating the equipment that projects films onto screens in cinemas.

Sucked Into

Often used metaphorically to describe becoming deeply involved or engrossed in something, sometimes unwillingly.

Sunrise

A 1927 American silent romantic drama film directed by F.W. Murnau, known for its groundbreaking cinematography and narrative structure.