a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter

a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jordan Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to
purchase the following inventory
Required purchases (on account)
April
$ 106,000
May
$ 126,000
June
$ 138,000
Jordan Books' accountant prepared the following schedule of cash payments for inventory purchases Jordan Books' suppliers require
that 85 percent of purchases on account be paid in the month of purchase, the remaining 15 percent are paid in the month following
the month of purchase
Required
a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
Schedule of Cash Payments for Inventory Purchases
April
May
June
Payment for current accounts payable
Payment for previous accounts payable
Total budgeted payments for inventory
$
90,100
11,000
$ 101,100
< Required A
Required B >

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Step 2: Req #A Schedule of cash payments for inventory purchases and accounts payable

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Step 3: Req #B Amount of accounts payable by the company at the end of second quarter

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