Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter dollar amounts.
Increase = I Decrease = D Not Affected = NA
On December 31, Year 1, Kirkland Company paid cash and recognized interest expense on bonds that it had issued at 101.5 on January 1, Year 1. The company uses the straight-line method to amortize bond discounts and premiums.

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The Answer of Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter dollar amounts.
Increase = I Decrease = D Not Affected = NA
On December 31, Year 1, Kirkland Company paid cash and recognized interest expense on bonds that it had issued at 101.5 on January 1, Year 1. The company uses the straight-line method to amortize bond discounts and premiums.

Indicate How Each Event Affects the Financial Statements