Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000 b. Cash receipts from sales: 30% is collected in the month

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000 b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual). $1.720,000, June (actual). $1.200.000 and July (budgeted) $1.400.000 c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual). $430,000: and July (budgeted) $600,000 d. Budgeted cash payments for salaries in July: $211,000. e. Budgeted depreciation expense for July: $12,000. . Other cash expenses budgeted for July: $150,000. 9. Accrued income taxes due in July: $80,000 h. Bank loan interest paid in July: $6,600. Additional Information: a. Cost of goods sold is 44% of sales. b. Inventory at the end of June is $80,000 and at the end of July is $64,000. c. Salaries payable on June 30 are $50,000 and are expected to be $40,000 on July 31. d. The equipment account balance is $1,600,000 on July 31 On June 30, the accumulated depreciation on equipment is $280,000 e. The $6600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000. f. Income taxes payable on July 31 are $165.760, and the income tax rate is 40%. g. The only other balance sheet accounts are Common Stock, with a balance of $600,000 on June 30, and Retained Earnings, with a balance of $1,072,000 on June 30. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31 Complete this question by entering your answers in the tabs below. Calculation Inc Stmt Bal Sheet Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts From Sales ---.........Collected in Total Sales May June July 31 Accounts Rec. July Credit sales from: May June 1,720,000 1,200,000 1,400,000 4,320,000 July Totals Calculation of Cash Payments for Merchandise --Paid in July 31 Total Purchases June July Accounts Pay. Purchases from: June $ July 430,000 600,000 1,030,000 Totals $ Inc Stmt Bal Sheet > Calculation Inc Stmt Bal Sheet Prepare a budgeted income statement for the month of July and a budgeted ACCO CO. Budgeted Income Statement For Month Ended July 31 Operating expenses Total operating expenses ACCO CO. Budgeted Balance Sheet As of July 31 Assets Liabilities and Equity Liabilities Stockholders' Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GCP Auditing Methods And Experiences

Authors: Editio

1st Edition

3871932841, 978-3871932847

More Books

Students also viewed these Accounting questions

Question

Is Genzyme a good strategic fit for Sanofi?

Answered: 1 week ago

Question

4. Choose appropriate and powerful language

Answered: 1 week ago

Question

2. Choose an appropriate organizational pattern for your speech

Answered: 1 week ago