question 1
question 2
The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,200 1,800 2,200 1,600 34,000 6,000 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. Show less Inventory Purchases Budget October November December Inventory needed 0 0 0 $ 0 $ 0 $ 0 Required purchases (on account) Schedule of Cash Payments Payment of current months' accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory 0 $ 0 $ 0 Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. October November December Sales commissions $ Supplies expense 7,200 1,800 2,200 Utilities 1,600 Depreciation on store equipment Salary expense Rent 34,000 6,000 1,000 53,800 Miscellaneous Total S&A expenses Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $180,000, consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. Show less October November December Sales Budget Cash sales $ $ 48,400 Sales on account 40,000 $ 140,000 180,000 $ 44,000 154,000 198,000 169,400 217,800 $ $ Total budgeted sales Schedule of Cash Receipts Cash sales $ $ $ Collections from accounts receivable 40,000 60,000 100,000 44,000 140,000 184,000 48,400 154,000 202,400 Total cash collections $ $
