Use the information provided to prepare the following for Justine Limited for August and September 2023:...
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Use the information provided to prepare the following for Justine Limited for August and September 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget (4 marks) (16 marks) INFORMATION The following budgeted information applicable to 2023 was provided by Justine Limited: A favourable bank balance of R30 000 is expected at the end of July 2023. 1. 2. 3. 4. 5. 6. 7. 8. 9. Total sales for June and July 2023 are expected to amount to R480 000 and R500 000 respectively. Sales are expected to increase by 10% per month thereafter. Sixty (60%) percent of the sales is for cash; the balance is on credit. Seventy percent (70%) of the amount owing for credit sales is expected to be received in the month after the sale. The balance is expected to be received two months after the sale. All purchases of inventory are on credit and creditors are paid two months after the purchase. Purchases amount to 50% of sales. Salaries and wages cost R80 000 per month for June and July, with an increase of 7.5% scheduled for August. Rent costs R120 000 per annum, payable monthly. The annual insurance expense is estimated at R60 000. However, a discount of 10% will be granted since the annual expense be settled during September. Rates are budgeted at R130 000 per year, paid half-yearly in August and February. Monthly administration costs of R26 000 (excluding R4 000 for depreciation) are payable in the month in which they are incurred. Advertising expense each month represents a fixed percentage of the sales of the previous month and is payable in the month in which it is incurred. Advertising for July 2023 is expected to amount to R24 000. Machinery with a cost price of R400 000 is expected to be purchased during August 2023. A deposit of 25% will be paid in August and the balance is payable in six equal monthly instalments commencing September 2023. A long-term loan of R240 000 at 15% per annum interest is to be raised on 01 September 2023. Interest is payable monthly with the first interest payment to be made on 30 September 2023. Use the information provided to prepare the following for Justine Limited for August and September 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget (4 marks) (16 marks) INFORMATION The following budgeted information applicable to 2023 was provided by Justine Limited: A favourable bank balance of R30 000 is expected at the end of July 2023. 1. 2. 3. 4. 5. 6. 7. 8. 9. Total sales for June and July 2023 are expected to amount to R480 000 and R500 000 respectively. Sales are expected to increase by 10% per month thereafter. Sixty (60%) percent of the sales is for cash; the balance is on credit. Seventy percent (70%) of the amount owing for credit sales is expected to be received in the month after the sale. The balance is expected to be received two months after the sale. All purchases of inventory are on credit and creditors are paid two months after the purchase. Purchases amount to 50% of sales. Salaries and wages cost R80 000 per month for June and July, with an increase of 7.5% scheduled for August. Rent costs R120 000 per annum, payable monthly. The annual insurance expense is estimated at R60 000. However, a discount of 10% will be granted since the annual expense be settled during September. Rates are budgeted at R130 000 per year, paid half-yearly in August and February. Monthly administration costs of R26 000 (excluding R4 000 for depreciation) are payable in the month in which they are incurred. Advertising expense each month represents a fixed percentage of the sales of the previous month and is payable in the month in which it is incurred. Advertising for July 2023 is expected to amount to R24 000. Machinery with a cost price of R400 000 is expected to be purchased during August 2023. A deposit of 25% will be paid in August and the balance is payable in six equal monthly instalments commencing September 2023. A long-term loan of R240 000 at 15% per annum interest is to be raised on 01 September 2023. Interest is payable monthly with the first interest payment to be made on 30 September 2023. Use the information provided to prepare the following for Justine Limited for August and September 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget (4 marks) (16 marks) INFORMATION The following budgeted information applicable to 2023 was provided by Justine Limited: A favourable bank balance of R30 000 is expected at the end of July 2023. 1. 2. 3. 4. 5. 6. 7. 8. 9. Total sales for June and July 2023 are expected to amount to R480 000 and R500 000 respectively. Sales are expected to increase by 10% per month thereafter. Sixty (60%) percent of the sales is for cash; the balance is on credit. Seventy percent (70%) of the amount owing for credit sales is expected to be received in the month after the sale. The balance is expected to be received two months after the sale. All purchases of inventory are on credit and creditors are paid two months after the purchase. Purchases amount to 50% of sales. Salaries and wages cost R80 000 per month for June and July, with an increase of 7.5% scheduled for August. Rent costs R120 000 per annum, payable monthly. The annual insurance expense is estimated at R60 000. However, a discount of 10% will be granted since the annual expense be settled during September. Rates are budgeted at R130 000 per year, paid half-yearly in August and February. Monthly administration costs of R26 000 (excluding R4 000 for depreciation) are payable in the month in which they are incurred. Advertising expense each month represents a fixed percentage of the sales of the previous month and is payable in the month in which it is incurred. Advertising for July 2023 is expected to amount to R24 000. Machinery with a cost price of R400 000 is expected to be purchased during August 2023. A deposit of 25% will be paid in August and the balance is payable in six equal monthly instalments commencing September 2023. A long-term loan of R240 000 at 15% per annum interest is to be raised on 01 September 2023. Interest is payable monthly with the first interest payment to be made on 30 September 2023. Use the information provided to prepare the following for Justine Limited for August and September 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget (4 marks) (16 marks) INFORMATION The following budgeted information applicable to 2023 was provided by Justine Limited: A favourable bank balance of R30 000 is expected at the end of July 2023. 1. 2. 3. 4. 5. 6. 7. 8. 9. Total sales for June and July 2023 are expected to amount to R480 000 and R500 000 respectively. Sales are expected to increase by 10% per month thereafter. Sixty (60%) percent of the sales is for cash; the balance is on credit. Seventy percent (70%) of the amount owing for credit sales is expected to be received in the month after the sale. The balance is expected to be received two months after the sale. All purchases of inventory are on credit and creditors are paid two months after the purchase. Purchases amount to 50% of sales. Salaries and wages cost R80 000 per month for June and July, with an increase of 7.5% scheduled for August. Rent costs R120 000 per annum, payable monthly. The annual insurance expense is estimated at R60 000. However, a discount of 10% will be granted since the annual expense be settled during September. Rates are budgeted at R130 000 per year, paid half-yearly in August and February. Monthly administration costs of R26 000 (excluding R4 000 for depreciation) are payable in the month in which they are incurred. Advertising expense each month represents a fixed percentage of the sales of the previous month and is payable in the month in which it is incurred. Advertising for July 2023 is expected to amount to R24 000. Machinery with a cost price of R400 000 is expected to be purchased during August 2023. A deposit of 25% will be paid in August and the balance is payable in six equal monthly instalments commencing September 2023. A long-term loan of R240 000 at 15% per annum interest is to be raised on 01 September 2023. Interest is payable monthly with the first interest payment to be made on 30 September 2023.
Expert Answer:
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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