Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60

image text in transcribed
image text in transcribed
image text in transcribed
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 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, 85 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 Paul's busiest months June 1 cash balance $14,600, June 1 supplies on hand $3,800, June 1 accounts receivable $8,000, June 1 accounts payable $3.700. Estimated sales for June July, and August are $24.000, $36,000, and $38.000, respectively, Sales during May were $22.000, and sales duting April were $16,000. Estimated purchases for June July, and August are $9,000, $17000, and $12,000, respectively. Purchases in May were 55.000 Required: 1. Compute budgeted cash receipts and budgeted cash payments for each month. 2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: June 1 accounts payable $3.700. Estimated sales for June July, and August are $24.000, $36,000, and $38,000, respectively. Sales during May were $22.000, and sales during April were $16.000. Estimated purchases for June, July, and August are $9.000, $17,000, and $12,000, respectively, . Purchases in May were $5,000, Required: 1. Compute budgeted cash receipts and budgeted cash payments for each month. 2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute budgeted cash receipts and budgeted cash payments for each month June July August Budgeted Cash Receipts Budgeted Cash Payments Required 1 Required 2 Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: Balances for August 31 Budgeted Balance Sheet Cash June 1 Balance Add Total Cash Receipts Less Total Cash Payments August 31 Balance Supplies Inventory 15% of August Purchases Accounts Receivable 40% of August Sales 5% of July Sales Balance at August 31 Accounts Payable 50% of August. Purchase

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

Auditing And Assurance Services Plus Pearson MyLab Accounting With Pearson EText

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

17th Global Edition

1292312106, 978-1292312101

More Books

Students also viewed these Accounting questions