Exercise 7-13A (Algo) Effect of credit card sales on financial statements LO 7-6 ...
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Accounting
Exercise A Algo Effect of credit card sales on financial statements LO
Uitra Day Spa provided $ of services during Year 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 percent service charge.
Required:
a Show the credit card sales Event and the subsequent collection of accounts receivable Event 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?
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