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. You do not need to enter amounts. Increase = IDecrease = DNo Effect = NA(Note that "No Effect" means that the event either does not affect the 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 October 1, Kramer Co. issued a $100,000 face value discount note. The note had a 6% discount rate and a one-year term to maturity. Kramer received cash in the amount of $94,000.AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(I) (I) (NA) (NA) (NA) (NA) (I)
Issuing the note increases assets (cash) by $94,000, decreases liabilities (discount on notes payable) by $6,000, and increases liabilities (notes payable) by $100,000. Total liabilities increase by $94,000. It does not affect the income statement. The cash proceeds are reported as a cash inflow for financing activities on the statement of cash flows.
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What will be an ideal response?
In a(n) ________ mistake, only one party is mistaken about a material fact regarding the subject matter of the contract.
A. bilateral B. mutual C. innocent D. unilateral
If two events are mutually exclusive, then
A) their probabilities can be added. B) they may also be collectively exhaustive. C) the joint probability is equal to 0. D) if one occurs, the other cannot occur. E) All of the above
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A) take back. B) fee. C) deposit fee. D) trade-in.