Effects of Transactions Upon Financial Measurements

question 196

Essay

Effects of transactions upon financial measurements
Five events relating to liabilities are described below:
(a)Recorded a bi-weekly payroll,including the issuance of paychecks to employees.Amounts withheld from employees' pay and payroll taxes will be forwarded to appropriate agencies in the near future.(Ignore post-retirement costs. )
(b)Made a monthly payment on a 12-month installment note payable,including interest and a partial repayment of the principal amount.
(c)Shortly before the maturity date of a six-month bank loan,made arrangements with the bank to refinance the loan on a long-term basis.
(d)Made an adjusting entry to record accrued interest payable on a 2-year bank loan.(Interest is paid quarterly. )
(e)Made a year-end adjusting entry to amortize a portion of the discount on long-term bonds payable.
Indicate the immediate effects of each transaction or adjusting entry upon the financial measurements in the five column headings listed below.Use the code letters,I for increase,D for decrease,and NE for no effect.

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Definitions:

Independent Power Producers

Companies or entities that generate electricity for sale to utilities and end users, not being owned by the entities which sell their output.

Energy Efficiency

The practice of using technology and methods to reduce the amount of energy required to provide products and services, maximizing the utility gained from each unit of energy consumed.

Low-Temperature Solar

Low-temperature solar refers to solar energy technologies that absorb sunlight to produce heat at lower temperatures for activities such as water heating and space heating.

High-Temperature Solar

A technology that captures and utilizes solar radiation at high temperatures for various applications, including electricity generation and industrial processes.