December cash disbursements for merchandise purchases would be: Alpha CD Corporation is a small wholesaler of gourmet food products. Data regarding thestore's operations follow:Sales are budgeted at P340,000 for November, P320,000 for December, andP310,000 for January.Collections are expected to be 80% in the month of sale, 16% in the monthfollowing the sale, and 4% uncollectible.The cost of goods sold is 75% of sales.The company purchases 60% of its merchandise in the month prior to themonth of sale and 40% in the month of sale. Payment for merchandise ismade in the month following the purchase.Other monthly expenses to be paid in cash are P24,000.Monthly depreciation is P15,000.Ignore taxes.Statement of Financial PositionOctober 31Assets:Cash.Accounts receivable (net of allowance for uncollectible accounts)Inventory .Property, plant and equipment (net of P572,000 accumulateddepreciation).Total assets....20,00070,000153,0001,094,000P1,337,000Liabilities and Stockholders' Equity:Accounts payableCommon stock....Retained earningsTotal liabilities and stockholders' equityP 254,000820,000263,000P1,337.000........

Cash Disbursements- Disbursements refer to payment. In business, Cash Disbursements refers to the…

Answered: December cash disbursements for…

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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Short Answer. Colgate Co. establishes a $200 petty ceah fund on Jeruary 1. On Jaruary 8, the fund shows $38 in conh elong with receipts for the following expenditurea: Postage: $74 ansportation-in: $29 $16 cellaneous expenses: $43 $162 ate Co. uses the perpetual system in accounting for merchandise inventory. 7.Prepare the journal entry to establish the fund on January Prepare the journal entry to reimburse the fund on January 8. toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). IUS Paragraph Arial 14px A v it to save and submit. Click Save All Answers to save all answers. T.
An invoice dated April 22 shows a net price of $175.00 with the terms 3/10, n/30. What is the latest date the cash discount is allowed?
an invoice dated oct 15 shows list price of $82 for the merchandise plus $30 shipping and handling. the terms are : trade discount of 20/10 and cash discount 2/10,1/20,n/30. invoice is paid Oct 24 calculate the amount needed to pay the invoice in full
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. • Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. . Ignore taxes. Assets Cash: Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash…
Data Recovery Services (DRS) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June. June 10 June 12 June 13 Rashid's hard drive crashes and he sends it to DRS. After initial evaluation, DRS e-mails Rashid to let him know that full data recovery will cost $2,700. Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA, qualifying him for a 10% educational discount and reducing the cost by $270 ( = $2,700 × 10%). DRS performs the work and claims to be successful in recovering all data. DRS asks Rashid to pay within 30 days of today's date, offering a 2% discount for payment within 10 days. When Rashid receives the hard drive, he notices that DRS did not successfully recover all data. Approximately 30% of the data has…
Cash receipt journal
A buyer who purchases merchandise under credit terms of 1/10, n/30 has 30 days after the invoice date to take advantage of the sales discount.
Merchandise costing $714 is sold for $1,234 on terms 2/10, n/30. If the buyer pays within the discount period, When collection of cash within the 10 days, the debit to Cash will be $
Journalizing Cash Payments Lakeview Industries uses a cash payments journal. Prepare a cash payments journal using the same format and account titles as illustrated in the chapter. Record the following payments for merchandise purchased: Sept. 5 Issued Check No. 318 to Clausen Corp. for merchandise purchased August 28, $6,500, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to McGonigle Co. for merchandise purchased September 2, $8,000, terms 1/10, n/30. A credit memo had previously been received from McGonigle Co. for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Elite Systems for merchandise purchased August 19, $3,500, terms n/30. 27 Issued Check No. 321 to Glenn Falls for merchandise purchased September 17, $6,500, terms 2/10, n/30. Payment is made within the discount period. If an amount box does not require an entry, leave it…
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.
4C. Draw up a cashbudget for Amal showing the balance at the end of each month, from the following information for the six months from July to December 2019: (a) Opening cash (including bank) balance on 1 July 2019 OMR 3600 (b) Production in units: Jan 500 Feb800 March 700 April 900 May1000 June850 July890 Aug1050 Sep650 Oct750 Nov 900 Dec800 (c) Raw materials used in production cost OMR 25 per unit. Of this, 75 per cent is paid in the month of production and remaining balance in the month after production. (d) Direct labour costs of OMR 20 per unit are payable in the month of production. (e) Variable expenses are OMR 10 per unit, payable 50 per cent in the same month as production and remaining balance in the month after production. (f) Sales at OMR 70 per unit: Jan 450 Feb 600 March 900 April 800 May 850 June 700 July 1,000 Aug 800 Sep 900 Oct 500 Nov 600 Dec 750 Debtors to pay their accounts one month after that in which sales is made (g) Fixed expenses of OMR 1,200 per month…
10) Complete the table. Invoice Date Terms Last Date Last Date to Pay Invoice Date Paid Net Price Complement of Cash Price to Take Discount cash-discount rate 22-Nov. 7/10, n/30 1-Dec. $4,178.45

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