Benson 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 $105,000 May $125,000 June $137,000 Benson Books' accountant prepared the following schedule of cash payments for inventory purchases. Benson Books' suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 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 $ 94,500 15,000 Total budgeted payments for inventory $ 109,500 Required A Required B Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter. Accounts payable
Benson 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 $105,000 May $125,000 June $137,000 Benson Books' accountant prepared the following schedule of cash payments for inventory purchases. Benson Books' suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 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 $ 94,500 15,000 Total budgeted payments for inventory $ 109,500 Required A Required B Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter. Accounts payable
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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Transcribed Image Text:Benson 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
$105,000
May
$125,000
June
$137,000
Benson Books' accountant prepared the following schedule of cash payments for inventory purchases. Benson Books' suppliers
require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 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
$
94,500
15,000
Total budgeted payments for inventory
$
109,500
Transcribed Image Text:Required A
Required B
Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second
quarter.
Accounts payable
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