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Exercise 5-14 Effect of credit card sales on financial statements LO 5-5 Ultra Day Spa provided $89,150 of services during 2018. All customers paid for

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Exercise 5-14 Effect of credit card sales on financial statements LO 5-5 Ultra Day Spa provided $89,150 of services during 2018. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 3 percent service charge. Required a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (A), or financing activity (FA). If an element is not affected by the event, leave the cell blank b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows? Complete this question by entering your answers in the tabs below. Required A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Flow column, indi whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell blank. (Not even require entry. Enter any decreases to account balances with a minus sign.) ULTRA DAY SPA Horizontal Statements Model Complete this question by entering your answers in the tabs below. Required A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Flow column, indi whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell blank. (Not every require entry. Enter any decreases to account balances with a minus sign.) Balance Sheet Assets Llab - Acct. Rec ULTRA DAY SPA Horizontal Statements Model Income Statement Equity Ret Ear Revenue - Expense Net Income + Event Cash Cash Flows 1. Ol 2 + Required Required 8 >

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