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Han's Supplies' bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased. Required 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 $290 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.) HAN'S SUPPLIES Horizontal Statements Model Income Statement Event Assets Accounts Receivable Liabilities + Equity Statement of Cash Flow Cash + + Revenue Expense Net Income : + = (a) (c) + ++ + + 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 d. Select which of the following is the correct answer. Asset exchange is $290. Asset source is $290. Asset use is $290. Asset exchange is $270 and Asset source is $20. Asset source is $270 and Asset use is $20. Asset exchange is $290 and Asset use is $20

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