On April 6, Year 1, Home Furnishings purchased $43,000 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $9,000 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a horizontal statements model like the following one. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Record the payment in Requirement c in a horizontal statements model like the one above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On April 6, Year 1, Home Furnishings purchased $43,000 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home
returned $9,000 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1.
Required
a. What is the amount that Home must pay Una Imports on April 15?
b. Record the events in a hörizontal statements model like the following one.
c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1?
d. Record the payment in Requirement c in a horizontal statements model like the one above.
Complete this question by entering your answers in the tabs below.
Required A
Required 3
Required C
Required D
Record the events in a horizontal statements model like the following one. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA
and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)
HOME FURNISHINGS
Effect of Events on the Financial Statements
Balance Sheet
Income Statement
Net
Income
Statement of Cash
Flow
Assets
Liabillties
Stkholders' Equity
Revenue -Expense =
Common
Stock
Accounts
Retained
Events
Cash
Inventory
+
Payable
Earnings
1. Pur. inv.
2. Ret. inv.
3. Disc.
4. Pd. AP
Transcribed Image Text:On April 6, Year 1, Home Furnishings purchased $43,000 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $9,000 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a hörizontal statements model like the following one. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Record the payment in Requirement c in a horizontal statements model like the one above. Complete this question by entering your answers in the tabs below. Required A Required 3 Required C Required D Record the events in a horizontal statements model like the following one. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Net Income Statement of Cash Flow Assets Liabillties Stkholders' Equity Revenue -Expense = Common Stock Accounts Retained Events Cash Inventory + Payable Earnings 1. Pur. inv. 2. Ret. inv. 3. Disc. 4. Pd. AP
Complete this question by entering your answers in the tabs below.,
Required A
Required B
Required C
Requited D
Record the payment in Requirement c in a horizontal statements model like the one above. (In the Cash Flow column, use OA to designate operating activ
for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus
HOME FURNISHINGS
Effect of Events on the Financial Statements
Balance Sheet
Income Statement
Net
Statement of Cash
Assets
Liabilities
Stkholders' Equity
Revenue
Expense
Income
Flow
Accounts
Common
Retained
Events
Cash
+ Inventory
Payable
Stock
Earnings
3. Pd. AP
Required C
Required D
Transcribed Image Text:Complete this question by entering your answers in the tabs below., Required A Required B Required C Requited D Record the payment in Requirement c in a horizontal statements model like the one above. (In the Cash Flow column, use OA to designate operating activ for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Net Statement of Cash Assets Liabilities Stkholders' Equity Revenue Expense Income Flow Accounts Common Retained Events Cash + Inventory Payable Stock Earnings 3. Pd. AP Required C Required D
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