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

question 13

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. $\text { Increase }=I \quad \text { Decrease }=D \quad \text { No Effect }=N$
Ferguson Co. issued common stock for $50,000 cash. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

Apply the specific identification method for inventory valuation.

Calculate the lower of cost or market (LCM) value for inventory items.

Understand and apply the lower of cost or market rule to inventory valuation.

Calculate the ending inventory and cost of goods sold using the LIFO method.

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Definitions:

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, and pain.

Nausea

A feeling of discomfort in the stomach often accompanied by an urge to vomit, which can have various causes, including illness and treatment side effects.

Vomiting

the forceful expulsion of the contents of the stomach through the mouth, often as a result of illness or intoxication.

Chronic Glomerular Nephritis

A long-term inflammation of the tiny filters in the kidneys (glomeruli), which can lead to kidney failure.