Use the following information to prepare the July cash budget for Acco Company. Ignore the Loan...
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Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $75,000. b. Budgeted cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale. Sales amounts are May (actual), $1,990,000; June (actual), $1,380,000; and July (budgeted), $1,500,000. c. Budgeted cash payments on merchandise purchases: 50% in the month of purchase and 50% in the month following purchase. Purchase amounts are June (actual), $550,000; and July (budgeted), $550,000. d. Budgeted cash payments for salaries in July: $200,000. e. Budgeted cash payments for sales commissions for July: $160,000. f. Budgeted cash payment for income taxes in July: $80,000. g. Budgeted cash payment for loan interest in July: $5,000. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales ---Collected in----------- July 31 Total Sales May June July Accounts Receivable Credit sales from: May $ 1,990,000 June 1,380,000 July 1,500,000 Totals $ 4,870,000 Calculation of Cash Payments for Merchandise Total Purchases June Purchases from: June $ 550,000 July 550,000 Totals $ 1,100,000 --Paid in---------- July Prepare the July cash budget for Acco Company. ACCO COMPANY Total cash available Less: Cash payments for: Total cash payments Cash Budget July July 31 Accounts payable Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $75,000. b. Budgeted cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale. Sales amounts are May (actual), $1,990,000; June (actual), $1,380,000; and July (budgeted), $1,500,000. c. Budgeted cash payments on merchandise purchases: 50% in the month of purchase and 50% in the month following purchase. Purchase amounts are June (actual), $550,000; and July (budgeted), $550,000. d. Budgeted cash payments for salaries in July: $200,000. e. Budgeted cash payments for sales commissions for July: $160,000. f. Budgeted cash payment for income taxes in July: $80,000. g. Budgeted cash payment for loan interest in July: $5,000. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales ---Collected in----------- July 31 Total Sales May June July Accounts Receivable Credit sales from: May $ 1,990,000 June 1,380,000 July 1,500,000 Totals $ 4,870,000 Calculation of Cash Payments for Merchandise Total Purchases June Purchases from: June $ 550,000 July 550,000 Totals $ 1,100,000 --Paid in---------- July Prepare the July cash budget for Acco Company. ACCO COMPANY Total cash available Less: Cash payments for: Total cash payments Cash Budget July July 31 Accounts payable
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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