**Han’s Supplies’ bank statement contained a $320 NSF check that one of its customers had written to pay for supplies purchased.****Required:**a. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model.b. Is the recognition of the NSF check on Han’s books an asset source, use, or exchange transaction?c. Suppose the customer redeems the check by giving Han’s $335 cash in exchange for the bad check. The additional $15 paid is a service fee charged by Han’s. Show the effects on the financial statements in the horizontal statements model.d. Is the receipt of cash referenced in Requirement c an asset source, use, or exchange transaction?e. Record in general journal form the adjusting entry for the NSF check and the entry for redemption of the check by the customer.

Han's Supples' bank statement contalned a $320 NSF check that one of Its customers had written to pay for supplies purchased. Requlred a. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model. b. Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction? c. Suppose the customer redeems the check by glving Han's $335 cash in exchange for the bad check. The additional $15 pald a service fee charged by Han's. Show the effects on the financial statements in the horizontal statements model.

Han's Supples' bank statement contalned a $320 NSF check that one of Its customers had written to pay for supplies purchased. Requlred a. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model. b. Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction? c. Suppose the customer redeems the check by glving Han's $335 cash in exchange for the bad check. The additional $15 pald a service fee charged by Han's. Show the effects on the financial statements in the horizontal statements model.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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