Required Required Required Required A C D Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for inv for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any account balances and cash outflows with a minus sign. Not all cells require entry.) Events Purchase inventory Return inventory Record discount Pay accounts payable Assets Cash + Inventory + ++ HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Liabilities Stockholders' Equity Accounts Payable + 5 Common Stock CHE Income Statement Retained Revenue - Expenses = Earnings < Required A ||||||||||| Required C > Net Income Statement of Cash Flows
Required Required Required Required A C D Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for inv for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any account balances and cash outflows with a minus sign. Not all cells require entry.) Events Purchase inventory Return inventory Record discount Pay accounts payable Assets Cash + Inventory + ++ HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Liabilities Stockholders' Equity Accounts Payable + 5 Common Stock CHE Income Statement Retained Revenue - Expenses = Earnings < Required A ||||||||||| Required C > Net Income Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Req B only

Transcribed Image Text:On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8,
Home returned $2,400 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 Furnishings must pay Una Imports on April 15?
. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity.
LA 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, Year
Ⓡ
d. Record the payment of the merchandise in Requirement (c) In a horizontal statements model. In the Cash Flow
column, use QA 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 Required Required Required
A
C
D
Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for invest
for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any dec
account balances and cash outflows with a minus sign. Not all cells require entry.)
Events
Purchase
inventory
Return
inventory
Record
discount
Pay accounts
payable
Assets
Cash + Inventory
+
+
#
HOME FURNISHINGS
Effect of Events on the Financial Statements
Balance Sheet
Liabilities Stockholders' Equity
Accounts Common Retained Revenue - Expenses =
Payable Stock Earnings
Ell
Income Statement
<Required A
E
=
Required C >
Net
Income
Statement
of Cash
Flows
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