For practice only : Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 75 percent is used in the month of purchase, and the remainder is used in the month following purchase.

The following information is available for the months of June, July, and August, which are Paul's busiest months:

• June 1 cash balance $14,200.
• June 1 supplies on hand $3,800.
• June 1 accounts receivable $7,900.
• June 1 accounts payable $3,700.
• Estimated sales for June, July, and August are $23,700, $35,600, and $37,900, respectively.
• Sales during May were $22,100, and sales during April were $15,900.
• Estimated purchases for June, July, and August are $8,800, $16,800, and $12,000, respectively.
• Purchases in May were $4,900.

Required:

1.Compute budgeted cash receipts and budgeted cash payments for each month.

Budgeted cash Receipt

June =

July =

August =

Budgeted Cash Payment

June =

July =

August =

2.Compute the balances necessary to create a budgeted balance sheet for August 31 for each of the following accounts:

June 1 Balance

Add: total cash receipt

Less: total cash payments

August 31st Balance

Supply Inventory

25 % of august purchase

Accounts receivable

40% of august sales

5 % of July sales

Balance at august 31

accounts payable

50 % of August purchase