Home Accessories' bank statement showed a $120 NSF check. Which of the following shows how recognizing this check will affect Home Accessories' financial statements?
Balance sheet Income Statement Statement of
Cash Flows
Assets =
Cash + Acc. Rec = Liab. + Equity Rev. − Exp. = Net Inc.
A. (120) + 120 = NA + NA NA - NA = NA (120) OA
B. (120) + NA = NA + (120) NA - 120 = (120) (120) OA
C. NA + 120 = NA + 120 120 - NA = 120 NA
D. (120) + 120 = NA + NA NA - NA = NA (120) IA
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