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14)While performing the monthly bank reconciliation, the bookkeeper for Avon Company made the journal entry for a bank service charge of $20. Which of the following correctly shows the effect of the entry on the financial statements?

	Assets	=	Liab.	+	Equity	Rev.	-	Expenses	=	Net Inc.	Cash
A.	NA		NA		NA	NA		NA		NA	(20) OA
B.	(20)		(20)		NA	NA		NA		NA	(20) OA
C.	(20)		NA		(20)	(20)		NA		(20)	(20) OA
D.	(20)		NA		(20)	NA		20		(20)	(20) OA

Option A

Option B

Option C

Option D

16.The accountant for Ye Olde Bookstore balanced out the cash register for the day. The register indicates $1,031.50 in sales, the change fund at the beginning of the day was $125 and the actual cash in the register is $1,150.25 (including the change fund, previously accounted for). What is the effect on the financial statements of the entry to record the day's sales and any related overage or shortage?

	Assets	=	Liab.	+	Equity	Rev.	-	Exp.	=	Net Inc.	Cash
A.	1,150.25	=	NA	+	1,150.25	1,150.25	-	NA	=	1,150.25	1,150.25 OA
B.	1,031.50	=	NA	+	1,031.50	1,031.50	-	NA	=	1,031.50	1,031.50 OA
C.	1,025.25	=	NA	+	1,025.25	1,031.50	-	6.25	=	1,025.25	1,025.25 OA
D.	1,025.25	=	NA	+	1,025.25	294.76	-	3.25	=	1,025.25	1,025.25 FA

Option A

Option B

Option C

Option D

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