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

Increase = I Decrease = D No Effect = NA

(Note that "No Effect" means that the event either does not affect the element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.)

1) On December 31, Year 1, Warren Co. recorded an adjusting entry to recognize accrued interest expense on a note payable.

2) Gilliam Co. repaid a note payable on September 30, Year 1. The 8-month note had been issued on February 1, Year 1. The $20,800 cash payment included a $20,000 repayment of principal and a $800 payment for interest that had not been previously accrued.

3) Joseph Company issued a one-year, 6% note to Community Bank.