Problem

Effect of adjustments to cash on the accounting equationAfter reconciling its bank account...

Effect of adjustments to cash on the accounting equation

After reconciling its bank account. Obian Company made the following adjusting entries:

Entry No.	Account Titles	Debit	Credit
1	Cash	845
	Accounts Receivable		845
	To record bank collection
2	Cash	44
	Interest Revenue		44
	To record interest revenue
3	Service Charge Expense	35
	Cash		35
	To record bank service charge
4	Accounts Receivable	174
	Cash		174
	To record NSF check from Beat
5	Cash	20
	Supplies Expense		20
	To correct overstatement of expense

Required

Identify the event depicted in each journal entry as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each entry affects the accounting equation by placing a + for increase, - for decrease, or NA for not affected under the following components of the accounting equation. The first event is recorded as an example.