The accountant prepared the firm's bank reconciliation and noted the following adjustments to the company records for its checking account.In the table below,indicate the impact on the accounting equation of recording the various adjusting journal entries for these items by inserting an "I" for increase or "D" for decrease.It is possible that an adjustment both increases and decreases an element of the accounting equation,as in the case of the first adjustment which has been completed as an example.
$\begin{array}{llll}
&&& \text { Stockholders } \
& \underline { \text {Adjustunents to company records } } & \underline {\text { Assets } }&\underline { \text { Liabilities } } & \underline { \text { Equity } } \
1.& \text { NSF checks } &\text { I, D } \
2.& \text { Check for utilities recorded twice by the company } \
3.& \text { Interest earned } \
4.& \text {Bank service charges } \
5.& \text {Bank debit memos for payment of rent } \
6.& \text { Bank credit memos for collection of a note receivable } \
\end{array}$

Question

The accountant prepared the firm's bank reconciliation and noted the following adjustments to the company records for its checking account.In the table below,indicate the impact on the accounting equation of recording the various adjusting journal entries for these items by inserting an "I" for increase or "D" for decrease.It is possible that an adjustment both increases and decreases an element of the accounting equation,as in the case of the first adjustment which has been completed as an example.
 $\begin{array}{llll}
&&& \text { Stockholders } \
& \underline { \text {Adjustunents to company records } } & \underline {\text { Assets } }&\underline { \text { Liabilities } } & \underline { \text { Equity } } \
1.&  \text { NSF checks } &\text { I, D }  \
2.& \text { Check for utilities recorded twice by the company }  \
3.&  \text { Interest earned }   \
4.& \text {Bank service charges }  \
5.&  \text {Bank debit memos for payment of rent  }   \
6.& \text { Bank credit memos for collection of a note receivable }  \
\end{array}$

Quizplus · Accepted Answer

The Answer of The accountant prepared the firm's bank reconciliation and noted the following adjustments to the company records for its checking account.In the table below,indicate the impact on the accounting equation of recording the various adjusting journal entries for these items by inserting an "I" for increase or "D" for decrease.It is possible that an adjustment both increases and decreases an element of the accounting equation,as in the case of the first adjustment which has been completed as an example.
 $\begin{array}{llll}
&&& \text { Stockholders } \
& \underline { \text {Adjustunents to company records } } & \underline {\text { Assets } }&\underline { \text { Liabilities } } & \underline { \text { Equity } } \
1.&  \text { NSF checks } &\text { I, D }  \
2.& \text { Check for utilities recorded twice by the company }  \
3.&  \text { Interest earned }   \
4.& \text {Bank service charges }  \
5.&  \text {Bank debit memos for payment of rent  }   \
6.& \text { Bank credit memos for collection of a note receivable }  \
\end{array}$

The Accountant Prepared the Firm's Bank Reconciliation and Noted the Following