Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Utra Day Spa provided $88.900 of services during year 1. Al customers

image text in transcribed
image text in transcribed
Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Utra Day Spa provided $88.900 of services during year 1. Al customers paid for the services with credit cards Ura Subited the credit card recepts to the credit card company immediately the credit card company pad Ultra cash in the amount of face value less 34 percent service charge Required Show the credit card sales Events and the subsequent collection of accounts receivable Event 2) in a hortzontal statements model in the Statement of Cash Flows column, indicate whether the tem is an operating activity (OAL. Investing activity, financing activity (FA) b. Based on this information one, 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 ( 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 Show the credit cards (tent) and the betection of accounts receivable (tent) in a borrontal statements made ter ny decreased to count Balochou with a change the statement Chandicate whether the man patingai(4), levert ) of finding that it can ULTRA DAY SW M Luty Cash MO Fone Espen 1 2 Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Ultra Day Spa provided 88.900 of services during Year 1. All customers paid for the services with credit cards. Witra 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 4 percent service charge Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2)in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) 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 Based on this information alone, answer the following questions: For all requirements, round your answers to the nearest whole dollar.) (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? Show less (1) Total assets 2) Revenge recognized (3) Cash flow from operating activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Oil And Gas Accounting

Authors: Charlotte J. Wright, Rebecca A. Gallun

5th Edition

1593701373, 978-1593701376

More Books

Students also viewed these Accounting questions