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Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Uitra Day Spa provided $89,900 of services during Year 1. All customers

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Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Uitra Day Spa provided $89,900 of services during Year 1. All customers paid for the services with credit cards. Uitra submitted the credit card recelpts to the credit card company immediately. The credit card company paid Uitra cash in the amount of face value less a 3 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 actuvity (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 actlvities reported on the statement of cash flows? Complete this question by entering your answers in the tabs below. Show the credit card sales (Event 1) and the subsequent collection of accounts recelvable (Event 2) in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether operating activity (OA), investing octivity (IA), or financing activity (FA). Not all cells require input. Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 Ultra Day Spa provided $89,900 of services during Year 1 . 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. 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. Based on this information alone, answer the following questions: Note: 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

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