Pauls Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 70 percent of their fees in the month the service is provided. In the month following service, Paul collects 25 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, 80 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 Pauls busiest months:

• June 1 cash balance $15,100.
• June 1 supplies on hand $4,100.
• June 1 accounts receivable $8,500.
• June 1 accounts payable $4,000.
• Estimated sales for June, July, and August are $25,500, $38,300, and $40,900, respectively.
• Sales during May were $23,900, and sales during April were $17,100.
• Estimated purchases for June, July, and August are $9,400, $18,000, and $12,900, respectively.
• Purchases in May were $5,200.

1. Compute budgeted cash receipts and budgeted cash payments for each month. June July August

Budgeted Cash Receipts

BUdgeted Cash Payments

2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: Balance for August 31 Budgeted Balance Sheet

Cash

June 1 Balance

Add: Total Cash Receipts

Less: Total Cash Payments

August 31 Balance

Supplies Inventory

20% of August Purchases

Accounts Receivable

30% of August Sales

5% of July Sales

Balance at August 31

Accounts payable

50% of August Purchases