On April 6, 2016, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, 2016.

c.

How much must Home pay for the merchandise purchased if the payment is not made until April 20, 2016?

Record the payment in Requirement c in a horizontal statements model like the one above. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

HOME FURNISHINGS

Effect of Events on the Financial Statements

Balance Sheet

Income Statement

Statement of Cash Flow

Assets

=

Liabilities

+

Stkholders Equity

Revenue

Expense

=

Net Income

Events

Cash

+

Inventory

Accounts Payable

Common Stock

+

Retained Earnings

3.

Pd. AP

)

+

=

+

+

=