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
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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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
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