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On April 6, Year 1, Home Furnishings purchased $40,000 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $8,400 of
On April 6, Year 1, Home Furnishings purchased $40,000 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $8,400 of the merchandise to Una Imports. Home paid cash for the merchandise on April 15, Year 1. Required: a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a horizontal financial statements model. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Record the payment in Requirement c in a horizontal financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the events in a horizontal financial statements model. Note: In the Cash-Flow column, use the initials "OA" for operating activities, "IA" for investment activity, "FA" for financing activity. Enter any decreases to account balances ar minus sign. Not al cells in the "Statement of Cash Flows" column may require an input leave cells blank if there is no corresponding input needed. HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Assets Liabilities Events Accounts Cash Inventory Payable Stockholders' Equity Common Retained Stock Earnings Statement of Cash Revenue Expense Net Income Flow 1. Purchased inventory 2. Returned inventory 3. Discount 4. Paid Accounts Payable . +
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