Adams Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects topurchase the following inventory.April$ 105,000Required purchases (on account)Adams Books' accountant prepared the following schedule of cash payments for inventory purchases. Adams Books' suppliers requirethat 90 percent of purchases on account be paid in the month of purchase, the remaining 10 percent are paid in the month followingthe month of purchaseRequired ARequireda. 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 BHay$125,000Payment for current accounts payablePayment for previous accounts payableTotal budgeted payments for inventoryComplete the schedule of cash payments for inventory purchases by filling in the missing amounts.Schedule of Cash Payments for Inventory PurchasesAprilMayS 94.50010,000S 104.500June$ 137,000JuneRequired B > Adams Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects topurchase the following inventory.April$ 105,000Required purchases (on account)$ 125,000Adams Books' accountant prepared the following schedule of cash payments for inventory purchases. Adams Books' suppliers requirethat 90 percent of purchases on account be paid in the month of purchase, the remaining 10 percent are paid in the month followingthe month of purchaseRequireda. Complete the schedule of cash payments for inventory purchases by filling in the missing amountsb. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarterComplete this question by entering your answers in the tabs below.June$ 137,000Required A Required BDetermine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the secondquarter.Accounts payable< Required ARestonest

A Schedule of Cash Payments for Inventory Purchases is a financial projection or plan that describes…

Answered: Adams Books buys books and magazines…

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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Collins Book Distributors distributes books to retail stores and extends credit terms of 2/10, n/30 to all its customers. During the month of June, the following merchandising transactions occurred: June Purchased 170 books on account for $6 each from Alpha Publishers, terms 3/10, n/30. 6 Received $60 credit for 10 books returned to Alpha Publishers. 6. Paid Alpha Publishers for balance due. 17 Sold 140 books on account to Cozy Bookstore for $11 each. 24 Received payment in full from Cozy Bookstore. 28 Sold 10 books on account to Ivy Bookstore for $11 each. 30 Granted Ivy Bookstore $22 credit for 2 books returned total cost was $12. Journalize the transactions for the month of June for Collins Book Distributors, using a perpetual inventory system. Assume the purchase cost of each book sold was $6.
Allstate Sporting Goods started April with an inventory of 10 sets of golf clubs that cost a total of $1,500. During April, Allstate purchased 20 sets of clubs for $3,200. At the end of the month, Allstate had six sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these two accounting methods, assuming the periodic system is used. Weighted-average cost FIFO If the store manager wants the most current cost for ending inventory, which method should he choose?
Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following transactions for the company: June 1 Sold merchandise for $6,250 with terms 2/10, n/30. Inventory cost was $5,000. 5 Sold merchandise for $10,000 with terms 3/10, n/30. Inventory cost was $6,000. 11 Received a check from the customer paying the balance due within the discount period.
Baird 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 $ 120,000 Required A Required B Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 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. Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory May $ 140,000 Complete the schedule of cash payments for…
Stuart 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) Stuart Books' accountant prepared the following schedule of cash payments for inventory purchases. Stuart Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 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. Required A Complete this question by entering your answers in the tabs below. Required B April $ 106,000 Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory $ Complete the schedule of cash payments for inventory…
QS 3-28 (Algo) Preparing a statement of retained earnings LO C2 J. Clancy owns Clancy Consulting. On December 31 of the prior year, the Retained Earnings account balance was $23,500. During the current year, the company paid $12,400 in cash dividends. Clancy Consulting reports net income of $49,100 for the current year. Prepare a statement of retained earnings for Clancy Consulting for the current year ended December 31. CLANCY CONSULTING Statement of Retained Earnings Retained earnings, December 31 prior year Retained earnings, Dec. 31 current year
Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted of 70 suitcases purchased at $50 each. Ayayai uses a perpetual inventory system. Ayayai has experienced a 5% return rate historically. During the month of July, the following merchandising transactions occurred: July 2Purchased 75 suitcases on account for $70 each from Sandhill Ltd., terms 2/10, n/30. 3Received a $280 credit from Sandhill after returning four suitcases because they were damaged. 6Sold 60 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45. 7Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory. 9Sold three suitcases-the right model number this time-on account to Satchel World Inc. for $100 each, with an individual cost of $70, terms n/30 11Paid Sandhill the balance owing 13Sold 30 suitcases on account to The Going Concern Limited for…
Lim Auto Parts, a family-owned auto parts store, began January with $10,000 cash. Management fo that collections from credit customers will be $11,600 in January and $15,300 in February. The stor scheduled to receive $8,500 cash on a business note receivable in January. Projected cash payme include inventory purchases ($16,700 in January and $13,300 in February) and selling and adminis expenses ($2,900 each month). (Click the icon to view additional information about Lim Auto Parts.) Read the requirements. More info Lim Auto Parts' bank requires a $10,000 minimum balance in the store's checking account. At the end of any month when the account balance falls below $10,000, the bank automatically extends credit to the store in multiples of $1,000. Lim Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 3% APR interest on the entire unpaid principal. The first payment occurs three months after the loan. Requirements 4 1. Prepare Lim Auto…
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…
10) The company recorded cash sales for an additional 12) 20 pairs of shoes for $65 each on the 24th of the month. 11) On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above) Prepare the appropriate journal entries for each transaction under a perpetual inventory system.

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