Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please reply as soon as posisble! ill make sure to leave a like:) Exercise 7-13A Effect of credit card sales on financial statements LO 7-6

image text in transcribed
image text in transcribed please reply as soon as posisble! ill make sure to leave a like:)
Exercise 7-13A Effect of credit card sales on financial statements LO 7-6 Ultra Day Spa provided $89,300 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 like the one shown next. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event (Enter any decreases to account balances with a minus sign. Round your answers to nearest whole dollar.) Balance Sheet Assets Llab + Acct. Rec. ULTRA DAY SPA Horizontal Statements Model Income Statement Equity Ret. Ear Revenue Expense Net Incomo Cash Statement of Cash Flows Event 1. 2 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

Step: 3

blur-text-image

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

Critical Marketing Audit The Case Of Apple Inc.

Authors: Joseph Katie

1st Edition

365637712X, 978-3656377122

More Books

Students also viewed these Accounting questions

Question

Evaluate employees readiness for training. page 275

Answered: 1 week ago