For the month of July 2014, Wheeler Company's bank statement contained the following information:
1) The bank had collected a $3,000 account receivable for the company.
2) The bank charged Wheeler $45 for various service fees during the month.
3) The checking account earned $28 in interest during the month.
Required:
Indicate how each of the three items listed would affect Wheeler's financial statements. Show dollar amounts of increases and decreases; enter "NA" if a given element of the financial statements is not affected by the item. Indicate whether each cash flow is an operating (OA), investing (IA), or financing (FA) activity.

Question

Quizplus · Accepted Answer

The Answer of For the month of July 2014, Wheeler Company's bank statement contained the following information:
1) The bank had collected a $3,000 account receivable for the company.
2) The bank charged Wheeler $45 for various service fees during the month.
3) The checking account earned $28 in interest during the month.
Required:
Indicate how each of the three items listed would affect Wheeler's financial statements. Show dollar amounts of increases and decreases; enter "NA" if a given element of the financial statements is not affected by the item. Indicate whether each cash flow is an operating (OA), investing (IA), or financing (FA) activity.

For the Month of July 2014, Wheeler Company's Bank Statement