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 of Heath Company, an employee found that the company had deposits in transit of $2,200.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (NA)
Deposits in transit are added to the bank balance on the bank reconciliation. Adjustments to the bank balance have no effect on the elements of the company's financial statements.
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