The bank statement for Raymond Company included a debit memo for a bank service charge of $50.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.Assets=Liab.+EquityRev.-Expenses=Net Inc.Cash b) Is the recognition of the bank service charge an asset source, use, or exchange transaction?
What will be an ideal response?
a)
| Assets | = | Liab. | + | Equity | Rev. | - | Expenses | = | Net Inc. | Cash |
| (50) | ? | NA | ? | (50) | NA | ? | 50 | ? | (50) | (50) OA |
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