Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted Sales Cash payments for merchandise July $63,800 40,800 August 589,200 33,400 September $48,200 34,280 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $12,500 in cash: $45,200 in accounts receivable: $4,700 in accounts payable and a $2.200 balance in loans payable A minimum cash balance of $12.200 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries (54,200 per month), and rent ($6,700 per month). (1) Prepare a cash receipts budget for July August, and September (2) Prepare a cash budget for each of the months of July, August, and September Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash receipts budget for July, August, and September, July August September 63,800 $ 80.200 $ 48,200 $ Total sales Cash sales Credit sales 20% 80% KELSEY Cash Receipts Budget For July August, and September July August Cash sales Collections of accounts receivable Total cash receipts September Required 2 > Required 1 Required 2 Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KELSEY Cash Budget For July, August, and September July August September Beginning cash balance $ 12.500 Total cash available Cash payments for Total cash payments 0 0 0 Preliminary cash balance Ending cash balance Loan balan Cash Budget For July, August, and September July August $ 12,500 September Beginning cash balance Total cash available Cash payments for 0 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance August September July 2,200 $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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

Step: 3

blur-text-image

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

Accounting Text And Cases

Authors: Robert Anthony, James S. Reece, Kenn Merchant, David Hawkins

11th International Edition

0071232265, 978-0071232265

More Books

Students also viewed these Accounting questions

Question

identify sources of secondary data across organisations;

Answered: 1 week ago