Indicate How Each Event Affects the Elements of Financial Statements

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.Use only one letter for each element.You do not need to enter amounts.

-On December 31,2016,Flagler Corporation had a balance of $20,000 on a line-of-credit with City Bank.Flagler made a payment of $11,200,which included $10,000 on the principal and $1,200 interest.Show the effects of this transaction on Flagler's financial statements.