BACKGROUND Understanding accounting information goes far beyond the ability to

BACKGROUND Understanding accounting information goes far beyond the ability to

admin / July 3, 2018

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BACKGROUND Understanding accounting
information goes far beyond the ability to record correct journal entries. It is essential that preparers and users of financial information understand how
transactions affect the elements of the financial statements.

REQUIRED Indicate whether the following
income statement related transactions for Counting Crows Inc. increased (I) decreased (D) or had no effect (NE) on the financial statement elements below. Each box should have an answer.

Assets

Liabilities

Equity

Accrual of interest on a note payable.

Use of prepaid insurance.

Sale of goods for cash.

Payment of current period utilities.

Realization of previously recorded unearned revenue.

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