Answered Essay: Han's Supplies' bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased.

Han’s Supplies’ bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased.
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:
Assets = Liabilities + Equity; Revenue – Expenses = Net Income; Cash Flow
Cash + Accts. Rec.
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 $290 cash in exchange for the ad check. the additional $20 paid a service fee charged by Han. Show the effects on the financial statements in the horizontal statements model in Requirement A.
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.

Expert Answer

 

Answer a & c.
Assets
Cash + Accounts Receivable = Liabilities + Sharholders’ Equity Revenue Expenses = Net Income Cash Flow
(a)          (270) +                            270 =                      – +                            –                –                     – =                 –              (270) OA
©            290 +                          (270) =                      – +                           20               20                     – =                20                 290 OA
Answer b.
It is a Exchange Transaction
Exchange Transaction -according to the FASB ASC glossary, is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations
Answer d.
It is a Exchange Transaction
Answer e.
Journal Entry
Date Particulars Dr. Amt. Cr. Amt.
1 Accounts Recevable                            Dr.            270
   To Cash            270
2 Cash                                                         Dr.            290
   To Accounts Receivable            270
   To Misc. Income               20
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?