On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $31,000 in exchange for common stock. b. Purchased supplies on account, $3,110. C. Paid creditor on account, $1,970. d. Earned sales commissions, receiving cash, $31,710. e. Paid rent on office and equipment for the month, $6,220. f. Paid dividends, $10,000. g. Paid automobile expenses for month, $2,980, and miscellaneous expenses, $1,430. h. Paid office salaries, $3,740. i. Determined that the cost of supplies on hand was $1,050; therefore, the cost of supplies used was $2,060.

On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $31,000 in exchange for common stock. b. Purchased supplies on account, $3,110. C. Paid creditor on account, $1,970. d. Earned sales commissions, receiving cash, $31,710. e. Paid rent on office and equipment for the month, $6,220. f. Paid dividends, $10,000. g. Paid automobile expenses for month, $2,980, and miscellaneous expenses, $1,430. h. Paid office salaries, $3,740. i. Determined that the cost of supplies on hand was $1,050; therefore, the cost of supplies used was $2,060.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following represents the normal sequence in which the below budgets are prepared? 1. Sales budget, budgeted balance sheet, budgeted income statement 2. Budgeted balance sheet, sales budget, budgeted income statement 3. Sales budget, budgeted income statement, budgeted balance sheet 4. budgeted income statement, sales budget, budegeted balance sheet
Classify the following activities as primarily managerlal accounting or financlal accounting: a. Preparing a cash budget for the next quarter. b. Analyzing the profitability of a request from a potential customer. c. Accumulating the transactions for the previous six months to prepare an income statement. d. Preparing a weekly performance report for the branch manager. e. Preparing an announcement to be released to the financial analysts.
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef. 310 units at $700 per unit 150 units at $1,200 per unit Master Chef. Vermont: Backyard Chef. 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef. Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Finished products: Grates.. 290 units Backyard Chef 30 units Stainless steel. 1,500 Ibs. Master Chef. 32 units Burner subassemblies 170 units Shelves.. 340 units c. Desired inventories at July 31: Direct materials: Finished products: Backyard Chef Master Chef.. Grates. 340 units 40 units Stainless steel. 1,800 lbs. 22 units Burner subassemblies 155 units Shelves..…
Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Minden Company Balance Sheet April 30 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $231,000 for May. Of these sales, $69,300 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $139,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month…
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $163,000. About 85% of sales is cash; the remainder is on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month. c. Food and supplies purchases, all on account, are expected to be $103,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. e. Utilities average $5,950 per month. Rent on the building is $4,100 per month. f. Insurance is paid…
i cant find the cash budget for september and october
please answer all correctly
What is the estimated amount of cash receipts from accounts receivable collections in august?
Use the guiding questions below to develop recommendations based on the June budget to help the manager of the marketing department • How does the budget help the marketing department coordinate their needs with other departments? • How can the budget be used to evaluate the marketing department’s performance?
All sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…
Perez Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Perez expects sales in January year 1 to total $210,000 and to increase 20 percent per month in February and March. All sales are on account. Perez expects to collect 68 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 8 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Perez will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1. Complete this question by entering your answers in the tabs below. Prepare a sales budget for the first quarter of year 1.
5 please follow instructions and show work