Use the following to answer questions 1?9: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 does not effect that element of the financial statements or that the event causes an increase in that element is offset by a decrease in that same element.) In preparing the bank reconciliation for Heath Company, an employee found that the bank statement reported a bank service charge of $50.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(D) (NA) (D) (NA) (I) (D) (D)
A bank service charge will create an adjustment to the book balance that will decrease assets (cash) and stockholders' equity (retained earnings). It will increase expenses, which decreases net income. It will be reported as a cash outflow for operating activities on the statement of cash flows.
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The balance of H. Howard, Drawing on December 31, 20--, is $13,000 . To close the Drawing account, the accountant would record
a. None of the answers listed b. a credit to H. Howard, Drawing. c. a debit to H. Howard, Drawing. d. a credit to Capital.
An important element of ethical/moral leadership involves serving ______.
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How could Phil best respond to a "fax attack" and differentiate McCall Automotive positively from other dealerships?
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