Question: Please help the wrong question. Ultra Day Spa provided $89,650 of services during Year 1 . All customers paid for the services with credit cards.

 Please help the wrong question. Ultra Day Spa provided $89,650 of

Please help the wrong question.

Ultra Day Spa provided $89,650 of services during Year 1 . All customers paid for the services with credit cards. Ultra submitted the credit card recelpts to the credit card company Immedlately. The credit card company pald Ultra cash in the amount of face value less a 4 percent servlce charge. Requlred: a. Show the credit card sales (Event 1) and the subsequent collection of accounts recelvable (Event 2) In a horizontal statements model. In the Statement of Cash Flows column, Indicate whether the Item Is an operating activity (OA), Investing actlvity (IA), or financing actlvity (FA). b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting perlod? (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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells require input

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!