Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) On January 1, Year 1, Morris Co. issued $100,000 of bonds at face value. AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(I) (I) (NA) (NA) (NA) (NA) (I)
Issuing bonds at face value increases assets (cash) and increases liabilities (bonds payable). It is reported as a cash inflow for financing activities on the statement of cash flows.
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