On April 6, Home Furnishings purchased $25,200 of merchandise from Una's Imports, terms 2/10, n/45. On April 8. Home Furnishings returned $2,400 of the merchandise to Una's Imports for credit. Home Furnishings pald cash for the merchandise on April 15. Required a. What Is the amount that Home Furnishings must pay Una's Imports on April 15? b. Record the events In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. c How much must Home Furnishings pay for the merchandise purchased if the payment Is not made until April 20? d. Record the payment of the merchandise In Requirement (C) In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity,. IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On April 6, Home Furnishings purchased $25.200 of merchandise from Una's Imports, terms 2/10, n/45. On April 8, Home Furnishings
retuned $2,400 of the merchandise to Una's Imports for credit. Home Furnishings pald cash for the merchandise on April 15.
Required
a. What Is the amount that Home Furnishings must pay Una's Imports on April 15?
b. Record the events In a horlzontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for
Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell
blank.
c How much must Home Furnishings pay for the merchandise purchased if the payment Is not made until April 20?
d. Record the payment of the merchandise In Requirement (C) In a horzontal statements model. In the Cash Flow column, use OA to
designate operating activity. IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not
affected by the event, leave the cell blank.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20?
Payment
< Required B
Required D >
Transcribed Image Text:On April 6, Home Furnishings purchased $25.200 of merchandise from Una's Imports, terms 2/10, n/45. On April 8, Home Furnishings retuned $2,400 of the merchandise to Una's Imports for credit. Home Furnishings pald cash for the merchandise on April 15. Required a. What Is the amount that Home Furnishings must pay Una's Imports on April 15? b. Record the events In a horlzontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. c How much must Home Furnishings pay for the merchandise purchased if the payment Is not made until April 20? d. Record the payment of the merchandise In Requirement (C) In a horzontal statements model. In the Cash Flow column, use OA to designate operating activity. IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20? Payment < Required B Required D >
On April 6, Home Furmishings purchased $25,200 of merchandise from Una's Imports, terms 2/10, n/45. On Apnl 8, Home Furnishings
retuned $2400 of the merchandise to Una's Imports for credit. Home Fumshings pald cash for the merchandise on Aprll 15.
Required
a What Is the amount that Home Furnishings must pay Una's Imports on April 15?
b. Record the events In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for
Investing activity, FA for finandng activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell
blank.
c How much must Home Furnishings pay for the merchandise purchased if the payment Is not made until April 20?
d. Record the payment of the merchandise In Requirement (C) In a hortzontal statements model. In the Cash Flow column, use OA to
designate operating activity. IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not
affected by the event, leave the cell blank.
Complete this question by entering your answers in the tabs below.
Required A
Required D
Required B
Required C
Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to designate operating activit
FA for financing activity, or NC for net change in cash.
a minus sign. Not all cells require entry.)
the element is not affected by the event, leave the cell blank. (Enter any decreases to account balar
HOME FURNISHINGS
Effect of Events on the Financial Statements
Balance Sheet
Income Statement
Statement of Cash
Flows
= Liabilities +
Accounts
Payable
Stockholders' Equity
Retained
Earnings
Assets
Net
Income
Events
Revenue
Expenses
Merchandise
Inventory
Common
Stock
Cash
Paid accounts payable
< Required C
Next
Transcribed Image Text:On April 6, Home Furmishings purchased $25,200 of merchandise from Una's Imports, terms 2/10, n/45. On Apnl 8, Home Furnishings retuned $2400 of the merchandise to Una's Imports for credit. Home Fumshings pald cash for the merchandise on Aprll 15. Required a What Is the amount that Home Furnishings must pay Una's Imports on April 15? b. Record the events In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for Investing activity, FA for finandng activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. c How much must Home Furnishings pay for the merchandise purchased if the payment Is not made until April 20? d. Record the payment of the merchandise In Requirement (C) In a hortzontal statements model. In the Cash Flow column, use OA to designate operating activity. IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required A Required D Required B Required C Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to designate operating activit FA for financing activity, or NC for net change in cash. a minus sign. Not all cells require entry.) the element is not affected by the event, leave the cell blank. (Enter any decreases to account balar HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Statement of Cash Flows = Liabilities + Accounts Payable Stockholders' Equity Retained Earnings Assets Net Income Events Revenue Expenses Merchandise Inventory Common Stock Cash Paid accounts payable < Required C Next
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