The Yankee Corporation has recently begun to accept credit cards. On July 7, Yankee made a credit card sale of $600. Assume that the credit card fee is recorded on the date of sale and that the credit card company charges a fee of 3%. Which of the following correctly shows the effects of the sale on July 7? Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenue- Expense Income Statement of Cash Flows A. 600 18 582 582 NA 582 NA B. 582 NA 582 600 18 582 582 0A C. 582 NA 582 600 18 582 NA D. 600 NA 600 600 NA 600 NA

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is