Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Superior Carpet Cleaning provided $85,750 of services during 2014, its first year of operations. All customers paid for the services with major credit cards. Superior

Superior Carpet Cleaning provided $85,750 of services during 2014, its first year of operations. All customers paid for the services with major credit cards. Superior submitted the credit card receipts to the credit card company immediately. The credit card company paid Superior cash in the amount of face value less a 4.00 percent service charge. Required a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown below. 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. (Round intermediate calculations and final answers to nearest whole dollar amount. Enter any decreases to account balances and cash outflows with a minus sign.)

Answer the following questions:
(1)

What is the amount of total assets at the end of the accounting period? (Round intermediate calculations and final answer to nearest whole dollar amount.)

What is the amount of revenue reported on the income statement?

What is the amount of cash flow from operating activities reported on the statement of cash flows? (Round intermediate calculations and final answer to nearest whole dollar amount.)

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

Value Based Management For Accounts Receivable

Authors: Kimberly Don Ketron

1505911184, 978-1505911183

More Books

Students also viewed these Accounting questions