Exercise 6-7A Treatment of NSF check LO 6-3 Han's Supplies' bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased. Required a. 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: (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) HAN'S SUPPLIES Statements Model Stockholders' Revenue Equity Assets Liabilities Expense Net Income Cash Flow Cash Accounts Receivable OA c. Suppose the customer redeems the check by giving Han's $290 cash in exchange for the bad check. The additional $20 paid a service fee charged by Han's. Show the effects on the financial statements in the horizontal statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) HAN'S SUPPLIES Statements Model Stockholders' Equity Revenue Assets Liabilities + Expense Net Income Cash Flow Cash Accounts Receivable e. Record in general journal form the adjusting entry for the NSF check and the entry for redemption of the check by the customer. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record entry for recognizing the NSF check. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal Journal entry worksheet