Question
Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the
Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the check by giving Montgomery $390 cash in exchange for the bad check. The additional $20 was a service fee charged by Montgomery. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.) | |
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Assets Income statement
Cash +Accts Rec.=Liabilities + Equity Revenue - Expense= Net Inc. Statement of cash flow
b. | Is the recognition of the NSF check on Montgomerys books an asset source, use, or exchange transaction? | ||||||
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d. | Select which of the following is the correct answer. | ||||||||||||
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