Fifteen transactions or events affecting Drillmasters, Inc., are as follows: 4. Earned an amount previously recorded as unearned revenue. 5. Made arrangements to extend a bank loan due in 30 days for another 24 months. 6. Made a monthly payment on a fully amortized installment note payable. (Assume this note is classified as a current liability.) 7. Called bonds payable due in five years at a price above the carrying value of the liability in the accounting records. Indicate the effects of each of these transactions upon the following elements of the company’s financial statements. Organize your answer in tabular form, using the column headings shown below. Use the following code letters to indicate the effects of each transaction on the accounting element listed in the column heading: I for increase, D for decrease, and NE for no effect. Income Statement Transaction Revenue - Expenses = Net Balance Sheet Assets = Current + Long-Term + Owners’ Liabilities Liabilities Equity Income 1.
Fifteen transactions or events affecting Drillmasters, Inc., are as follows:
4. Earned an amount previously recorded as unearned revenue.
5. Made arrangements to extend a bank loan due in 30 days for another 24 months.
6. Made a monthly payment on a fully amortized installment note payable. (Assume this note is
classified as a current liability.)
7. Called bonds payable due in five years at a price above the carrying value of the liability in the
accounting records.
Indicate the effects of each of these transactions upon the following elements of the company’s financial statements. Organize your answer in tabular form, using the column headings shown below. Use the following code letters to indicate the effects of each transaction on the accounting element listed in the column heading: I for increase, D for decrease, and NE for no effect.
Income Statement
Transaction Revenue - Expenses = Net
Assets = Current + Long-Term + Owners’
Liabilities Liabilities Equity
Income
1.
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