On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May Cash Sales P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: Creditors are paid one (1) month after purchases. Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April. On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May Cash Sales P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: Creditors are paid one (1) month after purchases. Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April.
Expert Answer:
Answer rating: 100% (QA)
ABC Traders Cash Budget for the months April 1 to May 30 Particulars April May Opening Cash Balance ... View the full answer
Related Book For
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
Posted Date:
Students also viewed these accounting questions
-
The difference between the cash in bank balance shown on the company's books and the cash balance shown on the bank statement may be caused by ................. and try ............. in recording...
-
Peterson Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kerry, the controller, is responsible for preparing Peterson's master budget and...
-
At Stevens Manufacturing, workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a(n): consolidated process...
-
Draw a plausible mechanism for each of the following transformations: (a) (b) [TSOH] MENH2 -H20
-
What are some of the key organizational elements that can affect the development and maintenance of a supportive organizational culture? As a consultant, what advice would you give to a functional...
-
A beam supports three loads of given magnitude and a fourth load whose magnitude is a function of position. If b = 1.5 m and the loads are to be replaced with a single equivalent force, determine (a)...
-
How does getting rid of cellular wastes require the integrated efforts of multiple body systems?
-
1. How well does Fog Creek Softwares pay structure meet (a) The legal requirement of equal pay for equal work; (b) The conditions of product markets; and (c) The conditions of labor markets? 2. Joel...
-
Lila Battle has determined that the annual demand for #6 screws is 1,000,000. Lila, who works in her brother's hardware store, is in charge of purchasing. She estimates that it costs $10 every time...
-
1. What are the advantages and disadvantages of the in-home method of selling Project Home products? 2. What other channels of distribution might Project Home use? 3. What do you think about the name...
-
The following are the balances of different accounts in the ledger of a company. Using the information given, you are required to find the total amount in the debit column of the Trial Balance....
-
Superior Cable TV buys the right to provide an exclusive movie channel (HBOW) in its province.Superior pays $300,000 per year for HBOW and the marginal cost of providing HBOW is zero.Superior's...
-
Can you help me answer/analyze/evaluate the following questions about the response email message below? 1. Is it clear and easy to understand? 2. Is it honest? 3. Does it project a sense of goodwill...
-
3. Imagine an ending balance in AR at December 31, 2016, of $100,000, and imagine the auditor is looking at subsequent cash receipts between January and March related to these receivables. a....
-
Accounting for the Lessor, not the Lessee. Sales-type and operating lease journal entries. I need help with these journal entries. Please answer whether it is a debit or credit, and why it is this...
-
Share Issuances for Cash Chase, Inc., issued 10,000 shares of $20 par value preferred stock at $50 per share and 8,000 shares of no-par value common stock at $20 per share. The common stock has no...
-
1. Discuss the main differences between a Good Design and a Bad Design. (2.5 Marks) 2. Visit any 5 websites and identify which design is good and which design is bad (2.5 Marks) 3. How to avoid...
-
Smthe Co. makes furniture. The following data are taken from its production plans for the year. Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs...
-
Nemad Company decided to adopt a standard cost system. The production manager wanted to set standards to use during the next year for the production of selector lever assemblies. Each assembly...
-
On December 31, 2010, before the yearly financial statements were prepared, the controller of the Stern Corporation reviewed certain transactions that affected accounts receivable and the allowance...
-
Watson Company pays a bonus to any of its five division managers who increase their percentage of income to sales over that of the year before. The manager of Division A is displeased because of the...
-
The primary problem with the hypothesis that life on Earth originated on Mars is that (a) Mars has never had water. (b) the proposed Martian fossils are much smaller than the tiniest bacteria on...
-
Which of these statements regarding the origin of life is false? (a) Life originated on an Earth whose atmosphere contained high levels of oxygen. (b)Miller and Urey obtained amino acids and other...
-
When you carry shopping bags, rather than grasp the handles with your hand as in Figure Q8.14a, you might choose to put them over your arm and slide the handle toward your elbow as in Figure Q8.14b....
Study smarter with the SolutionInn App