Solution
Ultra Day Spa
Ultra Day Spa |
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Horizontal Statement Model |
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Balance Sheet |
Income Statement |
Statement of Cash Flows |
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Assets |
= |
Liabilities |
+ |
Stockholders' Equity |
Revenues |
- |
Expenses |
= |
Net Income |
||||
Event |
Cash |
+ |
Accounts Receivable |
Retained Earnings |
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1 |
$89,143 |
$0 |
0 |
$89,143 |
NA |
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2 |
$91,900 |
- |
$2,757 |
$89,143 |
OA |
Service charge on credit cards = 3% of 91,900 = $2,757
Net cash = $91,900 - $2,757 = $89,143
Ultra Day Spa provided $91,900 of services curing Year 1. All customers paid for the services...
Ultra Day Spa provided $89,850 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 1 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown next. In the...
Ultra Day Spa provided $91,050 of services during 2016. 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 1.50 percent service charge Required Record the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown here. In the Cash Flow...