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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Complete this question by entering your answers in the tabs below.
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 Balance
Add: Total Cash Receipts
Less: Total Cash Payments
August 31 Balance
Supplies Inventory
August Purchases
Accounts Receivable
August Sales
July Sales
Balance at August 31
Accounts Payable
August Purchases
< Required 1
Required 2 >
![E8-24 (Algo) Determining Balances for a Budgeted Balance Sheet [LO 8-4]
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 70 percent of their fees in the month the service
is provided. In the month following service, Paul collects 25 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, 80 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 $15,100.
• June 1 supplies on hand $4,100.
• June 1 accounts receivable $8,500.
• June 1 accounts payable $4,000.
• Estimated sales for June, July, and August are $25,500, $38,300, and $40,900, respectively.
• Sales during May were $23,900, and sales during April were $17,100.
• Estimated purchases for June, July, and August are $9,400, $18,000, and $12,900, respectively.
Purchases in May were $5,200.
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:
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute budgeted cash receipts and budgeted cash payments for each month.
August
Budgeted Cash Receipts
Budgeted Cash Payments
June
July
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa880cc3d-71b2-44bc-9eb8-ccb18aa2c0ed%2Ffcad2703-9b64-4339-9d79-6f0ed9ec3ace%2F2gveoll_processed.png&w=3840&q=75)
Transcribed Image Text:E8-24 (Algo) Determining Balances for a Budgeted Balance Sheet [LO 8-4]
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 70 percent of their fees in the month the service
is provided. In the month following service, Paul collects 25 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, 80 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 $15,100.
• June 1 supplies on hand $4,100.
• June 1 accounts receivable $8,500.
• June 1 accounts payable $4,000.
• Estimated sales for June, July, and August are $25,500, $38,300, and $40,900, respectively.
• Sales during May were $23,900, and sales during April were $17,100.
• Estimated purchases for June, July, and August are $9,400, $18,000, and $12,900, respectively.
Purchases in May were $5,200.
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:
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute budgeted cash receipts and budgeted cash payments for each month.
August
Budgeted Cash Receipts
Budgeted Cash Payments
June
July
< Required 1
Required 2 >
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