chapter 4 question 1

1 ts eBook Hint Print ferences Han's Supplies's 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 financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. 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. c. Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction? d. Select which of the following is the correct answer. Complete this question by entering your answers in the tabs below. Req A and C Event a. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), Investing activities (IA), or financing activities (FA). 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. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (a) (c) Req B Cash Assets + Req D Accounts Receivable HAN'S SUPPLIES Horizontal Financial Statements Model Liabilities + Equity Revenue Income Statement Statement of Cash Flows Show less A

Han's Supplies's 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 financial statements model Also, in the Statement of Cash Fiows column, classify the cash flows as operating activities (OA). investing activities (A) or financing activities (FA) b. 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: c. Is the recognition of the NSF check on Han's books an asset source, use, of exchange transaction? d. Select which of the following is the correct answer. Complete this question by entering your answers in the tabs below. a. fhow the errects of recognizing the tiss check on the financial statements by recording the appropriate amounts in a horizontal financial statements model. Aso, in the Statement of Cash flows column, dassify the cash fows as operating activities (OA), Investing activities (LA), or financing activities (FA). c. Suppose the customer redeems the check by giving Han $290 cash in exchange for the bad check. The adibionat $20 paid a service fee charged by Hon. Show the effects on the financial satements. Note: Enter any decreases to account baiances and cash outflows with a minus sign, Leave ceils bisnk if no input is needed