Solomon Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesalerexpects to purchase the following inventory:Required purchases (on account)April$ 109,000May$ 129,000June$ 141,000Solomon Books' accountant prepared the following schedule of cash payments for inventory purchases. Solomon Books'suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent arepaid in the month following the month of purchase.Requireda. 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 thesecond quarter.Complete this question by entering your answers in the tabs below.Required A Required BComplete the schedule of cash payments for inventory purchases by filling in the missing amounts.Schedule of Cash Payments for Inventory PurchasesPayment for current accounts payableDaumant for previous counte nounhinAprilMayJune$92,6505000< Prev4 of 6Next >

CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Answered: Solomon Books buys books and magazines…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.
Guardian Services Inc. had the following transactions during the month of April: a. Record the June purchase transactions for Guardian Services Inc. in the following purchases journal format: b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April? c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?
My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?
Stuart 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) Stuart Books' accountant prepared the following schedule of cash payments for inventory purchases. Stuart Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 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. Required A Complete this question by entering your answers in the tabs below. Required B April $ 106,000 Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory $ Complete the schedule of cash payments for inventory…
Baird 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 $ 120,000 Required A Required B Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 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. Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory May $ 140,000 Complete the schedule of cash payments for…
Jordan 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 $ 106,000 May $ 126,000 June $ 138,000 Jordan Books' accountant prepared the following schedule of cash payments for inventory purchases Jordan Books' suppliers require that 85 percent of purchases on account be paid in the month of purchase, the remaining 15 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…
Adams Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory. April $ 105,000 Required purchases (on account) Adams Books' accountant prepared the following schedule of cash payments for inventory purchases. Adams 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 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 B Hay $125,000 Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory Complete the schedule of cash payments for…

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