Hans Supplies bank statement contained a $270 NSF check that one of its customers had written to

Question:

Han€™s Supplies€™ bank statement contained a $270 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 like the following one:

Han€™s Supplies€™ bank statement contained a $270 NSF check that

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 $290 cash in exchange for the bad check. The additional $20 paid a service fee charged by Han. Show the effects on the financial statements in the horizontal statements model in Requirement a.
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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...