Identifying effect of product versus selling, general, and administrative costs on financial statements

Required

Nailry Corporation recognized accrued compensation cost. Use the following model to show how this event would affect the company's financial statement under the following two assumptions: (1) the compensation is for office personnel and (2) the compensation is for production workers. Use pluses or minuses to show the effect on each element. If an element is not affected, indicate so by placing the letters NA under the appropriate heading.

Transcribed Image Text:

Liab. Equity Exp. Assets Net Inc. %3D Rev. !3! 1. 2.