Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tyler Sheen is the owner of Pleasant Inn. He provided the selected opening balances as at June 1 , 2 0 2 0 and the

Tyler Sheen is the owner of Pleasant Inn. He provided the selected opening balances as at June 1,2020 and the budgeted information for June and July 2020.
Selected Opening Balances as of June 1,2020
Cash $132,000
Accounts Receivable 119,000
Inventory 75,000
Long-term Assets 770,000
Accounts Payable 48,600
Shareholder's Equity 616,000
Budgeted Amounts
For the month of June:
Total Revenue $287,000
Total General and Administration Costs 168,000
Total Capital Expenditures 182,000
For the month of July:
Total Revenue 548,000
Total General and Administration Costs 218,000
Total Capital Expenditures 241,000
Do not enter dollar signs or commas in the input boxes.
Round your answer to the nearest dollar
The companys monthly depreciation represents 15% of general and administration costs. 60% percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the $182,000 capital expenditures for June, $116,000 will be paid in July. The remaining amount will be paid in the month in which they are incurred.
a) Calculate the total cash disbursement for the month of June.
General Administration costs from May $Answer
General Administration costs from June $Answer
Capital Expenditure $Answer
Total cash disbursement for June $Answer
b) Calculate the total cash disbursement for the month of July.
General Administration costs From June $Answer
General Administration costs From July $Answer
Capital Expenditure from June $Answer
Capital Expenditure from July $Answer
Total cash disbursement for July $Answer

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

Cost Accounting Planning And Control

Authors: Adolph Matz, Milton F. Usry

10th Edition

0538809256, 978-0538809252

More Books

Students also viewed these Accounting questions

Question

5. How is Mr. Bonner encouraging Marcuss self-efficacy?

Answered: 1 week ago