The bank statement for Raymond Company included a debit memo for a bank service charge of $50.Required: a) Enter this event into the horizontal financial statements model. Indicate dollar amounts of increases and decreases; for accounts that are not affected, indicate NA. For cash flows, show whether they are operating activities (OA), investing activities (IA), or financing activities (FA).Assets=Liab.+Stk. EquityRev.-Exp.=Net Inc.Stmt of Cash Flowsb) Is the bank service charge an asset source, asset use, or asset exchange transaction?
What will be an ideal response?
a)
| Assets | = | Liab. | + | Stk. Equity | Rev. | - | Exp. | = | Net Inc. | Stmt of Cash Flows |
| (50) | ? | NA | ? | (50) | NA | ? | 50 | ? | (50) | (50) OA |
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