While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25collection fee. Which of the following shows the effect of this transaction on the financial statements?Assets =A.(25)B. 625C. (25)D.625Multiple ChoiceBalance SheetLiabilities +N/AN/AN/AN/AOption COption BOption AOption DStockholdersEquity(25)625(25)625RevenueN/A650N/A650Income StatementExpense = Net Income Statement of Cash Flows25625 OA25650 OA25650 OA25625 OA(25)625(25)625

Points to be noted: Collection made by the bank after deducting the fee does not affect revenue…

While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 ollection fee. Which of the following shows the effect of this transaction on the financial statements? . 3. D. Assets = Liabilities + (25) N/A 625 N/A (25) N/A 625 N/A Multiple Choice Balance Sheet O Option C Option B Option A Option D Stockholders' Equity (25) 625 (25) 625 Revenue N/A 650 N/A 650 Income Statement Expense 25 25 25 25 Net Income Statement of Cash Flows 625 OA 650 OA 650 OA 625 OA (25) 625 (25) 625

While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 ollection fee. Which of the following shows the effect of this transaction on the financial statements? . 3. D. Assets = Liabilities + (25) N/A 625 N/A (25) N/A 625 N/A Multiple Choice Balance Sheet O Option C Option B Option A Option D Stockholders' Equity (25) 625 (25) 625 Revenue N/A 650 N/A 650 Income Statement Expense 25 25 25 25 Net Income Statement of Cash Flows 625 OA 650 OA 650 OA 625 OA (25) 625 (25) 625

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

100%

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 =
A.
(25)
B. 625
C. (25)
D.
625
Multiple Choice
Balance Sheet
Liabilities +
N/A
N/A
N/A
N/A
Option C
Option B
Option A
Option D
Stockholders
Equity
(25)
625
(25)
625
Revenue
N/A
650
N/A
650
Income Statement
Expense = Net Income Statement of Cash Flows
25
625 OA
25
650 OA
25
650 OA
25
625 OA
(25)
625
(25)
625

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Bank reconciliations