On April 6, 2018, Home Furnishings purchased $40,000 of merchandise from Una's Imports, terms 2/10 n/45. On April 8, Home Furnishings returned $8,400 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018 Required a. What is the amount that Home Furnishings must pay Una's Imports on April 15? b. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018? d. Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Required A Required B Required C Required D What is the amount that Home Furnishings must pay Una's Imports on April 15? Net amount due Required A Required B Required C Required D Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.) Show less A HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Events Statement of Cash Flows Assets Merchandise Inventory Liabilities + Accounts Payable Stockholders' Equity Common Retained Stock Earnings Revenue Net Income Expenses = Cash + + + = + = + + + + + Purchase inventory Return inventory Discount percentage Paid accounts payable = + = + = + + + Required A. Required B Required c Required D How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018? Payment Required A Required B Required C Required D Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash 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.) Show less HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Events Assets Merchandise + Inventory Liabilities + Accounts Payable Stockholders' Equity Common Retained Stock Earnings Statement of Cash Flows Revenue Net Income Expenses Cash + Paid accounts payable + = +
