Question

Han’s Supplies’ bank statement contained a $280 NSF check that one of its customers had written...

Han’s Supplies’ bank statement contained a $280 NSF check that one of its customers had written to pay for supplies purchased.

Required

  1. 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 $300 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.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Cash Accounts Receivable Liabilities Retained Earnings Revenue Expenses Net Income Cash Flow
(a) $            (280) $               280 $           (280) OA
(c $             300 $              (280) $               20 $               20 $               20 $             300 OA
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Han’s Supplies’ bank statement contained a $180 NSF check that one of its customers had written...
Han’s Supplies’ bank statement contained a $180 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...
Rainey Enterprises loaned $50,000 to Small Co. on June 1, 2018, for one year at 9...
Rainey Enterprises loaned $50,000 to Small Co. on June 1, 2018, for one year at 9 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to...
Dan Watson started a small merchandising business in 2018. The business experienced the following events during...
Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. Acquired $34,000 cash from the issue of common stock. Purchased inventory for $27,200 cash. Sold inventory costing $15,400 for $29,500 cash. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC...
On April 6, 2016, Home Furnishings purchased $39,000 of merchandise from Una Imports, terms 1/10 n/45....
On April 6, 2016, Home Furnishings purchased $39,000 of merchandise from Una Imports, terms 1/10 n/45. On April 8, Home returned $8,200 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, 2016. b. Record the events in a horizontal statements model like the following one. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not...
Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6...
Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows...
Rainey Enterprises loaned $35,000 to Small Co. on June 1, Year 1, for one year at...
Rainey Enterprises loaned $35,000 to Small Co. on June 1, Year 1, for one year at 7 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. (Do not round intermediate calculations and round final answers to nearest...
Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:...
Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: Accepted $19,000 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months. Performed legal services for cash of $69,000. Purchased $1,150 of office supplies on account. Paid $1,035 of the amount due on accounts payable. Paid a cash dividend to the stockholders of $5,200. Paid cash for operating expenses of $18,000. Determined that at the...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,600 Inventory 2,600 Common stock 8,100 Retained earnings 3,100    During 2018, the company experienced the following events: Purchased inventory that cost $6,100 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $560 were paid in cash. Returned $350 of the inventory that it had purchased because the inventory was damaged in...
Cordell Inc. experienced the following events in Year 1, its first year of operation: Received $40,000...
Cordell Inc. experienced the following events in Year 1, its first year of operation: Received $40,000 cash from the issue of common stock. Performed services on account for $82,000. Paid a $6,000 cash dividend to the stockholders. Collected $76,000 of the accounts receivable. Paid $53,000 cash for other operating expenses. Performed services for $19,000 cash. Recognized $3,500 of accrued utilities expense at the end of the year. Required a. & c. Identify the events that result in revenue or expense...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,300 Inventory 2,300 Common stock 7,800 Retained earnings 2,800    During 2018, the company experienced the following events: Purchased inventory that cost $5,800 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash. Returned $300 of the inventory that it had purchased because the inventory was damaged in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT