Chapter 6, Problem 7AE

a.

To determine

Show the effects of recognizing NSF check on the financial statement by recording the appropriate amount in a horizontal statement model.

b.

To determine

Explain whether the recognition of the NSF check on the book of Company H is an asset source, use or exchange transaction.

c.

To determine

Show the effect of the given transaction on the financial statement by recording the appropriate amount in a horizontal statement model.

d.

To determine

Explain whether the receipt of cash received from the customer is an asset source or exchange to the company.

e.

To determine

Prepare journal entry to record the given transaction.