6-7A Hanâ??s Suppliesâ?? bank statement contained a $270 NSF check that one of its customers had wri

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 =
Liab. + Equity

Rev –
Exp. = Net. Inc


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 bad
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.


of June 30, 2016, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was
$15,200. The following information is
1. Deposit
in transit, $2,400.
2. Credit
memo in bank statement for interest earned in June, $30.
3. Outstanding
check, $6,690.
4. Debit
memo for service charge, $20.


a. Determine
the true cash balance by preparing a bank reconciliation as of June 30, 2016
using the preceding information.
b. Record
in general journal format the adjusting entries necessary to correct the
unadjusted book balance.


following information is available for Trinkle Company for the month of June:
1. The
unadjusted balance per the bank statement on June 30 was $81,500.
2. Deposits
in transit on June 30 were $3,150.
3. A
debit memo was included with the bank statement for a service charge of $40.
4. A
$5,611 check written in June had not been paid by the bank.
5. The
bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the
interest collected amounted to $50.


the true cash balance as of June 30. (Hint: It is not necessary to use all of
the preceding items to determine the true balance.)

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