Problem 7-34 Effect of debt transactions on Required Show the effect of each of
ID: 2579215 • Letter: P
Question
Problem 7-34 Effect of debt transactions on Required Show the effect of each of the ments using a horizontal statements model like ni dents using a ht following independent accounting events on the financial state- decrease, and NA for not affected. The first event is reco a for the following one. Use + for increase, Event No. Assets Liab. + Rev. Net Inc.|| Cash Flow Equity| Rev. - Exp· NAFA NA NA NA Borrowed funds using a line of credit. a. an interest payment for funds that had been borrowed against a line of credit c. Issued a bond at face value. d. Made an i e. Made nterest payment on a bond that had been issued at face value. a cash payment on a note payable for both interest and principal.Explanation / Answer
Event no Assets Liab Equity Rev. Exp. Net inc. Cash flow a + + + FA b - - + - -OA c + + + FA d - - + - -OA e Principal - - -FA Interest - - + - -OA