Effects of transactions upon financial measurements Five events relating to liab

Question

Effects of transactions upon financial measurements Five events relating to liabilities are described below a. Recorded a bi-weekly payroll, including the issuance of paychecks to employees Amounts withheld from employees' pay and payroll taxes will be forwarded to appropriate agencies in the near future b. Made a monthly payment on a 12 month installment note payable, ncluding interest and a partial repayment of the (ignore post-retirement costs.) principal amount c. Shortly before the maturity date of a six-month bank loan, made arrangements with the bank to refinance the loan on a long-term basis d. Made an adjusting entry to record accrued interest payable on a 2 year bank loan, (Interest is paid quarterty) e. Made a year-end adjusting entry to amortize a portion of the discount on long-term bonds payable. Indicate the immediate effects of each transaction or adjusting entry upon 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 Transaction Current Liabilities Long-Term Liabilities Netincome Net Cash Flow (All Activities Combined)

Explanation / Answer

Transaction Current Liabilities Long-Term Liabilities Netincome Net Cash Flow (All Activites Combined) (a) Increase Increase No efffect No Effect (b) Decrease Decrease Decrease Decrease (c) Decrease Increase No Effect No Effect (d) Increase No Effect Decrease No Effect (e) No Effect Decrease Decrease No Effect

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.