Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ultra Day Spa provided $92,300 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts

image text in transcribed
image text in transcribed
image text in transcribed
Ultra Day Spa provided $92,300 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 5 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 here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell blank, 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? Complete this question by entering your answers in the tabs below. Required A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave th Intermediate values. Round your final answers to the nearest whole coltar. Not every cell will require entry. Enter any decreases to account balanc ULTRA DAY SPA Horizontal Statements Model Required A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave Intermediate values. Round your final answers to the nearest whole dollar. Not every cell will require entry. Enter any decreases to account bala Balance Sheet Assets Llab Acct. Rec. ULTRA DAY SPA Horizontal Statements Model Income Statement Equity Ret. Ear. Revenue Expense Net Income Cash Flows Cash Event 1. 2 + Required B > Complete this question by entering your answers in the tabs below. Required A Required B Based on this information alone, answer the following questions: (Do not round intermediate values. Round your answer to nearest whole dollar.) (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? Show less 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

Accounting Principles Volume 1 And Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

1119786649, 978-1119786641

More Books

Students also viewed these Accounting questions