The Bank Statement for Ronson Company Included a Debit Memo

question 88

Essay

The bank statement for Ronson Company included a debit memo for a bank service charge of $58.
Required:
a)Show the effects of recognizing the bank service charge on the financial statements by recording appropriate amounts in the financial statements model provided.Include dollar amounts of increases and decreases; for cash flow,indicate whether it is an operating activity,investing activity,or financing activity. b)Is the recognition of the bank service charge an asset source,use,or exchange transaction?

---

Definitions:

Structure Indicated

Referring to a particular physical or anatomical part identified for study or treatment.

Flap-Like Structure

A piece of tissue or material that is attached on one side, often found in biological or mechanical contexts, serving various functions such as regulation or protection.

Larynx

The voice box; an organ in the top of the neck involved in breathing, producing sound, and protecting the trachea against food aspiration.

Tertiary Bronchi

The third level of branching airways in the lungs, extending from the secondary bronchi to the bronchioles.