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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 80

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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 80 percent of their fees in the month the service is provided. In the month following service, Paul collects 15 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 $15.800. June 1 supplies on hand $4200 June 1 accounts receivable $8,800 June 1 accounts payable $4,100 Estimated sales for June July, and August are $26.400, $39.600, and $42.000, respectively Sales during May were $24400, and sales during April were $17,600, Estimated purchases for June July, and August are $9,800, 518,600 and $13.200, respectively Purchases in May were $5400 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: Required 1 Required 2 Compute budgeted cash receipts and budgeted cash payments for each month. June July August Budgeted Cash Receipts 24,520 $ 31,480 $ 39,240 Budgeted Cash Payments Required 2 > 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 Bilance $ 15,800 Add Total Cash Receipts Less Total Cash Payments August 31 Balance Supplies Inventory 15% of August Purchases Accounts Receivable 20% of August Sales 15% of July Sales Balance at August 31 0 Accounts Payable 50% of August Purchases

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