Ultra Day Spa provided $94,050 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. Required a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (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 A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash File whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell bl answers to the nearest whole dollar. Not every cell will require entry. Enter any decreases to account balances with a minus sign.) Balance Sheet Assets Event Cash + Acct. Rec Liab + ULTRA DAY SPA Horizontal Statements Model Equity Ret. Ear. Revenue Income Statement Expense Net Income Cash Flows
Ultra Day Spa provided $94,050 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. Required a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (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 A Required B Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash File whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell bl answers to the nearest whole dollar. Not every cell will require entry. Enter any decreases to account balances with a minus sign.) Balance Sheet Assets Event Cash + Acct. Rec Liab + ULTRA DAY SPA Horizontal Statements Model Equity Ret. Ear. Revenue Income Statement Expense Net Income Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give answer in image
Transcribed Image Text:Ultra Day Spa provided $94,050 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.
Required
a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one
shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing
activity (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 A Required B
Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown here. In the Cash Fle
whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element is not affected by the event, leave the cell bl
answers to the nearest whole dollar. Not every cell will require entry. Enter any decreases to account balances with a minus sign.)
Event
Cash
Assets
Balance Sheet
Acct. Rec
Llab
ULTRA DAY SPA
Horizontal Statements Model
Equity
Ret. Ear.
Income Statement
Revenue Expense Net Income
Cash Flows
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education