Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(THE ANSWERS INPUTED WERE FROM ME AND ARE WRONG) If you could show the steps that'd be great im really lost Pauls Pool Service provides

(THE ANSWERS INPUTED WERE FROM ME AND ARE WRONG)

If you could show the steps that'd be great im really lost

Pauls 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 Pauls 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 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.

image text in transcribed

Required 1. Compute budgeted cash receipts and budgeted cash payments for each month June July August Budgeted Cash Receipts56,50045,50 Budgeted Cash Payments$ 51,800 7,000$ 13,000$ 14,500 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 Cash June 1 Balance Add: Total Cash Receipts Less: Total Cash Payments August 31 Balance Supplies Inventory 15% of August Purchases $ 2,550 Accounts Receivable 40% of August Sales 5% of July Sales Balance at August 31 Accounts Payable 50% of August Purchases $ 16,700 Balance Sheet $14,600 51,800 14,500 $37,300 $15,200 13,900 29,100

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

Students also viewed these Accounting questions

Question

please dont use chat gpt AI 8 4 0 . .

Answered: 1 week ago