Indicate How Each Event Affects the Elements of Financial Statements $\begin{array}{lll}\text { Increase }=\mathrm{I} & \text { Decrease }=\mathrm{D} & \text { No Effect }=\mathrm{N}\end{array}$

question 33

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. $\begin{array}{lll}\text { Increase }=\mathrm{I} & \text { Decrease }=\mathrm{D} & \text { No Effect }=\mathrm{N}\end{array}$
Vincent Co. provided services for $25,000 cash. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

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Definitions:

Work in Process Inventory

The account that tracks the costs associated with partially completed goods that are still in the process of being manufactured.

Unadjusted Cost of Goods Sold

Unadjusted Cost of Goods Sold (COGS) is the initial calculation of all costs directly associated with the production of goods before any adjustments for inventory changes or other factors.

Journal Entry

A record in the accounting journal that represents a business transaction and its effect on the accounts.

Manufacturing Overhead

All indirect costs associated with the production process, from maintenance expenses of the production facility to the supplies needed for operation.