Hans Supplies bank statement contained a $300 NSF check that one of its customers had written to pay for supplies purchased. Required

1. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model.
2. Is the recognition of the NSF check on Hans books an asset source, use, or exchange transaction?
3. Suppose the customer redeems the check by giving Han's $320 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.
4. Is the receipt of cash referenced in Requirement c an asset source, use, or exchange transaction?
5. Record in general journal form the adjusting entry for the NSF check and the entry for redemption of the check by the customer.

Han's Supplies' bank statement contained a $300 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. 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's $320 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. 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. Complete this question by entering your answers in the tabs below. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an account was not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)