Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help ASAP!! TUMEWUIR 1 Saved Help Save & Exit Check Exercise 7-13A Effect of credit card sales on financial statements LO 7-6 Ultra Day Spa

help ASAP!! image text in transcribed
image text in transcribed
TUMEWUIR 1 Saved Help Save & Exit Check Exercise 7-13A Effect of credit card sales on financial statements LO 7-6 Ultra Day Spa provided $94,500 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 * 2 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 like the one shown next. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) Balance Sheet Assets Liab. - Acct. Rec. ULTRA DAY SPA Horizontal Statements Model Income Statement Equity Ret. Ear. Reven Net Income Statement of Cash Flows Event Cash 1. 2 + b. Based on this information alone answer the following questions: 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? (Round your answers to nearest whole dollar.) (1) Total assets (2) Revenue 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_2

Step: 3

blur-text-image_3

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

Guide To The Study Of Auditing 1914

Authors: Samuel F. Racine

1st Edition

0266614493, 978-0266614494

More Books

Students also viewed these Accounting questions

Question

How We Listen?

Answered: 1 week ago