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On April 6, Home Furnishings purchased $39,000 of merchandise from Una's Imports, terms 1/10, n/45. On April 8, Home Furnishings returned $8,200 of the merchandise to Una's Imports for credit. Home Furnishings paid 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. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20? d. Record the payment for the merchandise in Requirement (c) in the horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More sp the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activit Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Income Statement HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet = Liabilities Accounts Payable + Stockholders' Equity Common Stock Retained Earnings Revenue Events Cash + Inventory Purchase inventory Return inventory + Record discount Paid accounts payable ++ ++ Expenses = Net Income Statement of Cash Flows

On April 6, Home Furnishings purchased $39,000 of merchandise from Una's Imports, terms 1/10, n/45. On April 8, Home Furnishings returned $8,200 of the merchandise to Una's Imports for credit. Home Furnishings paid 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. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20? d. Record the payment for the merchandise in Requirement (c) in the horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More sp the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activit Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Income Statement HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet = Liabilities Accounts Payable + Stockholders' Equity Common Stock Retained Earnings Revenue Events Cash + Inventory Purchase inventory Return inventory + Record discount Paid accounts payable ++ ++ Expenses = Net Income Statement of Cash Flows

FINANCIAL ACCOUNTING
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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am. 113.

On April 6, Home Furnishings purchased $39,000 of merchandise from Una's Imports, terms 1/10, n/45. On April 8, Home Furnishings returned $8,200 of the merchandise to Una's Imports for credit. Home Furnishings paid 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. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20? d. Record the payment for the merchandise in Requirement (c) in the horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More sp the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activit Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Income Statement HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet = Liabilities Accounts Payable + Stockholders' Equity Common Stock Retained Earnings Revenue Events Cash + Inventory Purchase inventory Return inventory + Record discount Paid accounts payable ++ ++ Expenses = Net Income Statement of Cash Flows
Transcribed Image Text:On April 6, Home Furnishings purchased $39,000 of merchandise from Una's Imports, terms 1/10, n/45. On April 8, Home Furnishings returned $8,200 of the merchandise to Una's Imports for credit. Home Furnishings paid 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. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20? d. Record the payment for the merchandise in Requirement (c) in the horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More sp the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activit Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Income Statement HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet = Liabilities Accounts Payable + Stockholders' Equity Common Stock Retained Earnings Revenue Events Cash + Inventory Purchase inventory Return inventory + Record discount Paid accounts payable ++ ++ Expenses = Net Income Statement of Cash Flows
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