Question

In: Accounting

Typewritten answers only, please, no handwritten answers. Thank you. On April 6, 2018, Home Furnishings purchased...

Typewritten answers only, please, no handwritten answers. Thank you.

On April 6, 2018, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10 n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.

Required

What is the amount that Home Furnishings must pay Una's Imports on April 15?

Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.

How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018?

Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.

What is the amount that Home Furnishings must pay Una's Imports on April 15?

Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.
HOME FURNISHINGS
Effect of Events on the Financial Statements
Events Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Stockholders’ Equity Revenue – Expenses = Net Income
Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings
Purchase inventory + = + + – =
Return inventory + = + + – =
Discount percentage + = + + – =
Paid accounts payable + = + + – =

On April 6, 2018, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10 n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.

Required

What is the amount that Home Furnishings must pay Una's Imports on April 15?

Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.

How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018?

Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.
HOME FURNISHINGS
Effect of Events on the Financial Statements
Events Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Stockholders’ Equity Revenue – Expenses = Net Income
Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings
Paid accounts payable + = + + – =

Typewritten answers only, please, no handwritten answers. Thank you.

Solutions

Expert Solution

Solution a:

Amount to be paid by home furnishing on April 15 = (37,000 - $7,800) * 98% = $28,616

solution b:

HOME FURNISHINGS
Effect of Events on the Financial Statements
Events Assets = Liabilities + Stockholders’ Equity Income Statement Statement of Cash Flows
Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings Revenue – Expenses = Net Income
Purchase inventory + $37,000.00 = $37,000.00 + + - =
Return inventory + -$7,800.00 = -$7,800.00 + + - =
Discount percentage + -$584.00 = -$584.00 + + - =
Paid accounts payable -$28,616.00 + = -$28,616.00 + + - = -$28,616.00 OA

Solution c:

Amount to be paid by home furnishing on April 15 = (37,000 - $7,800) = $29,200

Solution d:

HOME FURNISHINGS
Effect of Events on the Financial Statements
Events Assets = Liabilities + Stockholders’ Equity Income Statement Statement of Cash Flows
Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings Revenue – Expenses = Net Income
Paid accounts payable -$29,200.00 + = -$29,200.00 + + - = -$29,200.00 OA

ekkarill92 answered 1 year ago
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