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Data table December 31, 2023, account balances: Requirements Cash $ 28,000 Accounts Receivable 14,000 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale. Merchandise Inventory 17,000 Accounts Payable 12,000 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024. Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Salaries and Commissions Payable 2,900 Budgeted amounts for 2024: January February 3. Sales, all on account $ 80,000 $ 81,600 Purchases, all on account 41,200 42,000 Commissions Expense 4,000 4,080 Salaries Expense 5,000 5,000 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Rent Expense 3,200 3,200 Depreciation Expense 600 600 Insurance Expense 200 200 Income Tax Expense 1,800 1,800

Data table December 31, 2023, account balances: Requirements Cash $ 28,000 Accounts Receivable 14,000 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale. Merchandise Inventory 17,000 Accounts Payable 12,000 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024. Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Salaries and Commissions Payable 2,900 Budgeted amounts for 2024: January February 3. Sales, all on account $ 80,000 $ 81,600 Purchases, all on account 41,200 42,000 Commissions Expense 4,000 4,080 Salaries Expense 5,000 5,000 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Rent Expense 3,200 3,200 Depreciation Expense 600 600 Insurance Expense 200 200 Income Tax Expense 1,800 1,800

FINANCIAL ACCOUNTING
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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Paperclip Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2024 January February Variable expenses: 70% of last month's Commission Expense 30% of current month's Commission Expense Total payments for variable expenses 5000 5000 Fixed expenses 70% of last month's Salaries Expense 3500 3500 30% of current month's Salaries Expense 1500 1500 3200 3200 Rent expense Total payments for fixed expenses Total payments for S and A expenses Requirement 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Panerclin Company
Transcribed Image Text:Paperclip Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2024 January February Variable expenses: 70% of last month's Commission Expense 30% of current month's Commission Expense Total payments for variable expenses 5000 5000 Fixed expenses 70% of last month's Salaries Expense 3500 3500 30% of current month's Salaries Expense 1500 1500 3200 3200 Rent expense Total payments for fixed expenses Total payments for S and A expenses Requirement 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Panerclin Company
Data table December 31, 2023, account balances: Requirements Cash $ 28,000 Accounts Receivable 14,000 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale. Merchandise Inventory 17,000 Accounts Payable 12,000 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Salaries and Commissions Payable 2,900 Budgeted amounts January February 3. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024. Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Sales, all on account 80,000 $ 81,600 Purchases, all on account 41,200 42,000 Commissions Expense 4,000 4,080 Salaries Expense 5,000 5,000 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Rent Expense 3,200 3,200 Depreciation Expense 600 600 Insurance Expense 200 200 Income Tax Expense 1,800 1,800
Transcribed Image Text:Data table December 31, 2023, account balances: Requirements Cash $ 28,000 Accounts Receivable 14,000 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale. Merchandise Inventory 17,000 Accounts Payable 12,000 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Salaries and Commissions Payable 2,900 Budgeted amounts January February 3. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024. Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Sales, all on account 80,000 $ 81,600 Purchases, all on account 41,200 42,000 Commissions Expense 4,000 4,080 Salaries Expense 5,000 5,000 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Rent Expense 3,200 3,200 Depreciation Expense 600 600 Insurance Expense 200 200 Income Tax Expense 1,800 1,800
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