Ultra Day Spa provided $93,650 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted thecredit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value lessa 2 percent service charge.Requireda. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the oneshown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financingactivity (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 ARequired BRecord the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In twhether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element is not affected by the event, leaveanswers to the nearest whole dollar. Not every cell will require entry. Enter any decreases to account balances with a minus sign.)ULTRA DAY SPAHorizontal tatements ModelBalance SheetIncome StatementAssetsLiabEquityEventCash+Acct. Rec.Ret. Ear.RevenueExpense = Net IncomeCash Flows1.88,951=88,95189,850899 =88,9512.88,951+(88,951)=88,951OA( Prey4 of 5Next > ConnectHomeworkSavedHelpUitra Day Spa provided $93,650 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted thecredit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less2 percent service charge.Required6. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the oneshown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financingactivity (FA H en 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 totai 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 ARequired BBased on this information alone, answer the following questions: (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 A1. Total assets2. Revenue recognized3.Cash flow from operating activities

Ultra Day Spa provided $93,650 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 2 percent service charge.

Ultra Day Spa provided $93,650 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 2 percent service charge.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At the end of the month of January, you reconciled your credit card account. All of the transactions reconciled, and you were able to get your reconciliation to balance to $0. You want to go ahead and pay the bill to the credit card company, but the bill does not appear in the list of possible bills you can pay when you select "Pay Bills" from the Create icon. The credit card bill was $850.00. Below is the liability section of your balance sheet. Since you have already reconciled the account, how can you pay the bill?
Pagan Restaurants accepts credit and debit cards as forms of payment. Assume Pagan had $10,000 of credit and debit card sales on April 30, 2023. 9. 10. Suppose Pagan's processor charges a 1% fee and deposits sales net of the fee. Joumalize the sales transaction for the restaurant. Suppose Pagan's processor charges a 1% fee and deposits sales using the gross method. Journalize the sales transaction for the restaurant. 9. Suppose Pagan's processor charges a 1% fee and deposits sales net of the fee. Journalize the sales transaction for the restaurant. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Apr. 30 10. Suppose Pagan's processor charges a 1% fee and deposits sales using the gross method. Joumalize the sales transaction for the restaurant. Date Apr. 30 Accounts and Explanation Debit Credit
Bhil
Please show all the work.
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Additional information: • Lamplight purchases 25 light fixtures for $25 each on August 1, invoice date August 1, with no discount terms. Lamplight returns 5 light fixtures (receiving a credit amount for the total purchase price per fixture of $25 each) on August 3. • Lamplight purchases an additional 15 light fixtures for $10 each on August 19, invoice date August 19, with no discount terms. • Lamplight pays $130 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30? What account is used to recognize this outstanding amount?
On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $9,900. In payment for the services, Whole Grain Bakery signs a 8% note requiring the payment of the face amount and interest to Terrell & Associates on September 1. Required: For Whole Grain Bakery, record the issuance of the note payable on March 1 and the cash payment on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Bolton sold a customer service contract with a price of $37,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, n/30 and uses the gross method. Required: Hide Prepare the journal entry assuming the payment is made after 10 days (after the discount period). Account and Explanation Debit Credit Record collection of accounts receivable
On June 14, Year 1, Sure-Fit Shoe Store sold $13,000 of merchandise that cost $8,700 and accepted credit cards as payment. Sure-Fit electronically transmitted the credit card forms to the credit card company which charges a 4% fee to handle such transactions. On June 18, Year 1, Sure-Fit received the proceeds from the credit card company. Required: a. How will the entry to record the sale of the merchandise on June 14, Year 1, affect the company's financial statements? b. How will the entry to record the credit card proceeds on June 18, Year 1, affect the company's financial statements? Complete this question by entering your answers in the tabs below. Required A Required B How will the entry to record the sale of the merchandise on June 14, Year 1, affect the company's financial statements? Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Balance Sheet Liabilities Stockholders' Equity Revenue Income…
All information needed is inlcuded.
Ainsley Emporium sells gift cards to customers. In December, customers purchased $10,000 of gift cards. During December, the gift card recipients used gift cards to purchase $3,000 of goods. Prepare Ainsley’s entry for (1) the sale of the gift cards and (2) the year-end adjusting entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record cash received for goods to be provided at a later date) (To record the sale of merchandise using a gift card)
Zane Enterprises accepts a credit card as payment for $1,000 of services provided to a customer. The credit card company charges a 4% handling charge for its collection services. Based on this information Multiple Choice Zane will pay the credit card company $1,000 cash. Zane will collect $1,000 cash from the credit card company. Zane will pay the credit card company $960 cash. Zane will collect $960 cash from the credit card company.