Question
While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 collection
While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 collection fee. Which of the following shows the effect of this transaction on the financial statements?
| Assets | = | Liab. | + | Stk. Equity | Rev. | Exp. | = | Net Inc. | Stmt of Cash Flows | ||
| A. | (25) | NA | (25) | NA | 25 | (25) | 625 OA | ||||
| B. | 625 | NA | 625 | 650 | 25 | 625 | 650 OA | ||||
| C. | (25) | NA | (25) | NA | 25 | (25) | 650 OA | ||||
| D. | 625 | NA | 625 | 650 | 25 | 625 | 625 OA |
-
Option A
-
Option B
-
Option C
-
Option D
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Basics Of IT Audit Purposes Processes And Practical Information
Authors: Stephen D. Gantz
1st Edition
0124171591, 978-0124171596
