Indicate How Each Event Affects the Elements of Financial Statements

Essay

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts. Enter only one letter for each element.Increase = I Decrease = D Not Affected = NA
During the process of preparing the bank reconciliation, an employee for Heath Company discovered that Check number 4261 for $65, used to pay an account payable, was recorded in the company books as $56.