D. both a, and b. 7. If a bookkeeper mistakenly recorded a $65 deposit as $56, t
ID: 2596852 • Letter: D
Question
D. both a, and b. 7. If a bookkeeper mistakenly recorded a $65 deposit as $56, the error would be shown on the bank reconcilation as a Click the icon to see the Worked Solution. OA. $9 addition to the book balance. O B. $56 deduction from the book balance. O C. $56 addition to the book balance. O D. $9 deduction from the book balance. Kyler Shea Productions held investments in trading securities with a fair value of $55,000 at December 31, 2016. These investments cost Kyler Shea Productions $50,000 on January 1, 2016. What should appear on the Kyler Shea Production's income statement for the year ended December 31, 2016, for the trading securities? Click the icon to see the Worked Solution. O A. $50,000 OB. $55,000 ° C. $5,000 unrealized gain O D. Cannot be determined from the data givenExplanation / Answer
Answer is A.
Since the the book is showing a lesser amount than the actual deposit , the difference should be added to the book balance to arrive at the bank balance.
Answer is C.
Since there is no disposal of the asset by Kyler Shea Productions, the income statement will show the increase in the value of the investment as an "unrealized gain".
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