Exercise 4-7 Treatment of NSF check LO 4-3 Han's Supplies' bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased. Required a. & c. Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check. (c) Customer redeems the check by giving Hans $290 cash in exchange for the bad check. The additional $20 was a service fee charged by Hans. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign.) HAN'S SUPPLIES Horizontal Statements Model Income Statement Event Assets Accounts Receivable Liabilities + Equity Statement of Cash Flow Cash - Revenue Expenso Net Income (a) (c) ++ + + Exercise 4-10 Adjusting the cash account LO 4-3 As of June 30, 2018, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was $15,200. The following information is available: 1. Deposit in transit, $2,400. 2. Credit memo in bank statement for interest earned in June, $30. 3. Outstanding check, $6,690. 4. Debit memo for service charge, $20 Required Determine the true cash balance by preparing a bank reconciliation as of June 30, 2018, using the preceding Information. (Negative amounts should be indicated with minus sign.) Bank Reconciliation Unadjusted bank balance 6/30/2018 True cash balance 6/30/2018 $ 0 Unadjusted book balance 6/30/2018 True cash balance 6/30/2018 $ 0