Total cash receipts Total cash disbursements 1st Quarter $ 300,000 $ 358,000 Beginning cash balance Total cash Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: 2nd Quarter $ 420,000 $ 328,000 Borrowings Repayments The company's beginning cash balance for the upcoming fiscal year will be $35,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) 3rd Quarter $ 350,000 $ 318,000 Answer is complete but not entirely correct. Garden Depot Cash Budget 1st Quarter $ 4th Quarter $ 370,000 $ 338,000 33,000✔ 2nd Quarter 3rd Quarter 35,000 $ 10,000 $ 68,010 $ 300,000✔ 420,000✔ 350,000 335,000 418,010 (358,000)✔ 318,000 (23,000) 100,010 430,000 (328,000) 102,000 33,000 X 4th Quarter 100,010 370,000✔ 470,010 338,000 132,010 $ Year 33333 35,000 1,440,000 1,475,000 1,342,000✔ 133,000✔ 33,000✔ (33,000) 1000)
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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