Stanley Corporation recognized the annual expiration of insurance on December 31, 2012. Using the following horizontal financial

Question:

Stanley Corporation recognized the annual expiration of insurance on December 31, 2012. Using the following horizontal financial statements model shown, indicate how this event affected the company's financial statements under the following two assumptions: (1) the insurance was for office equipment, or (2) the insurance was for manufacturing equipment. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financialstatements.

Equity Assets Event No. Prepaid Cash + Insurance + Inventory Com. Ret. Rev. - Exp. Stk. + Ear. Net Inc. !! 1. 2.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...