Fifteen transactions or events affecting Drillmasters, Inc., are as follows: 1. Made a year-end adjusting entry to accrue interest on a note payable that has the interest rate stated separately from the principal amount. 2. A liability classified for several years as a long-term becomes due within the next 12 months. 3. Recorded the regular weekly payroll, including payroll taxes, amounts withheld from employees, and the issuance of paychecks. 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. 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:
1. Made a year-end
separately from the principal amount.
2. A liability classified for several years as a long-term becomes due within the next 12 months.
3. Recorded the regular weekly payroll, including payroll taxes, amounts withheld from employees,
and the issuance of paychecks.
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.
Transaction Revenue - Expenses = Net
Balance Sheet
Assets = Current + Long-Term + Owners’
Liabilities Liabilities Equity
Income
1.
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