Exercise $7-13$A $($Static$)$ Effect of credit card sales on financial statements LO $7-6$

Ultra Day. Spa provided $$120,000$ 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 $5$ percent service charge.

Required

a$.$ Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$

b$.$ Based on this information alone, answer the following questions:

What is the amount of total assets at the end of the accounting period?

What is the amount of revenue reported on the income statement?

What is the amount of cash flow from operating activities reported on the statement of cash flows?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B