Question
Tyler Sheen is the owner of Stopby Inn. He provided the selected opening balances as at June 1, 2020 and the budgeted information for June
Tyler Sheen is the owner of Stopby 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 | $108,600 |
Accounts Receivable | 71,000 |
Inventory | 210,000 |
Long-term Assets | 508,000 |
Accounts Payable | 51,600 |
Shareholder's Equity | 734,000 |
Budgeted Amounts | |
For the month of June: | |
Total Revenue | $317,000 |
Total General and Administration Costs | 201,000 |
Total Capital Expenditures | 169,000 |
For the month of July: | |
Total Revenue | 401,500 |
Total General and Administration Costs | 249,000 |
Total Capital Expenditures | 201,000 |
Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest dollar The companys monthly depreciation represents 20% of general and administration costs. 80% 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 $169,000 capital expenditures for June, $114,000 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started