Ultra Day Spa provided $120,000 of services during 2016. 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 5 percent service charge.

Record the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown here. 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.)

ULTRA DAY SPA

Horizontal Statements Model

Balance Sheet

Income Statement

Assets

=

Liab

+

Equity

Event

Cash

+

Acct. Rec.

Ret. Ear.

Revenue

Expense

=

Net Income

Cash Flows

1.

0

+

=

0

+

120,000

=

0

NA

2.

114,000

+

=

0

+

=

114,000

OA

***This is as far as I could figure out. Please help me with determining the other values in the chart. Thank you!