Problem
Superior Carpet Cleaning provided $85,750 of services during 2014, its first year of operations. All customers paid for the services with major credit cards. Superior submitted the credit card receipts to the credit card company immediately. The credit card company paid Superior cash in the amount of face value less a 4.00 percent service charge. Required a. Record the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model like the one shown below. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event. (Round intermediate calculations and final answers to nearest whole dollar amount. Enter any decreases to account balances and cash outflows with a minus sign.)
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?