Han's Supplies' bank statement contained a $350 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 A 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 Liabilities + Expense = Net Income Assets Accounts Receivable Cash Flow Cash b. Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction? Asset source Asset use Asset exchange c. Suppose the customer redeems the check by giving Han's $370 cash in exchange for the bad check. The additional $20 paida 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 Revenue Equity Liabilities Expense - Net Income Assets Accounts Receivable Cash Flow Cash d. Is the receipt of cash referenced in Requirement can asset source, use, or exchange transaction? $370 Asset use, $20 Asset source $350 Asset source, $20 Asset use $370 Asset exchange, $20 Asset source $350 Asset source, $20 Asset exchange $350 Asset use, $20 Asset exchange $350 Asset exchange, $20 Asset source e. Record in general joumal 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 Debit General Journal Transaction Credit a Journal entry worksheet