Six events relating to liabilities follow:a. Paid the liability for interest payable accrued at the end of the last accounting period.b. Made the current monthly payment on a 12-month installment note payable, including interestand a partial repayment of principal.c. Issued bonds payable at 98 on March 1, 2011. The bonds pay interest March 1 and September 1.d. Recorded September 1, 2011, interest expense and made semiannual interest payment onbonds referred to in part c.e. Recorded necessary adjusting entry on December 31, 2011, for bonds referred to in part c.f. Recorded estimated six-month warranty expense on December 31, 2011.Indicate the effects of each transaction or adjusting entry on the financial measurements in the fivecolumn headings listed below. Use the code letters I for increase, D for decrease, and NE for no effect.Net Cash Flow Net Cash FlowCurrent Long-Term Net from Operating (from AllTransaction Liabilities Liabilities Income Activities Sources)
Six events relating to liabilities follow:
a. Paid the liability for interest payable accrued at the end of the last accounting period.
b. Made the current monthly payment on a 12-month installment note payable, including interest
and a partial repayment of principal.
c. Issued bonds payable at 98 on March 1, 2011. The bonds pay interest March 1 and September 1.
d. Recorded September 1, 2011, interest expense and made semiannual interest payment on
bonds referred to in part c.
e. Recorded necessary
f. Recorded estimated six-month warranty expense on December 31, 2011.
Indicate the effects of each transaction or adjusting entry on 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.
Net
Current Long-Term Net from Operating (from All
Transaction Liabilities Liabilities Income Activities Sources)
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