2A, 2B, 3 please Required:1. Prepare a schedule of expected cash collections for July, August, and September.2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for thequarter ended September 30.2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.3. Prepare an income statement for the quarter ended September 30.4. Prepare a balance sheet as of September 30.Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for thequarter ended September 30.Reg 2AReq 2BReq 3Budgeted cost of goods soldAdd: Desired ending merchandise inventoryTotal needsLess: Beginning merchandise inventoryRequired purchasesMerchandise Purchases BudgetJulyAugustSeptemberS 238,000 S 252,000 $ 245,00052,500 X55,500300,500 X304,500 X(67,500) X250,500 $Req 2B >Req 4292,000✔ (63,750)S 241,000< Req 1S(65,625)248,000Quarter$735,000✔55,500790,500 X(196,875) X$739,500 X [The following information applies to the questions displayed below.]Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendaryear. The company's balance sheet as of June 30th is shown below:AssetsCashBeech CorporationBalance SheetJune 30Accounts receivableInventoryPlant and equipment, net of depreciationTotal assetsLiabilities and Stockholders' EquityAccounts payableCommon stockRetained earningsTotal liabilities and stockholders' equity$ 84,000144,00063,750223,000$ 514,750$84,000349,00081,750$ 514,750Beech's managers have made the following additional assumptions and estimates:1. Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively.2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 45% in the month of sale and 55%In the month following the sale. All of the accounts receivable at June 30 will be collected in July.3. Each month's ending Inventory must equal 15% of the cost of next month's sales. The cost of goods sold is 70% of sales. Thecompany pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month followingthe purchase. All of the accounts payable at June 30 will be paid in July.4. Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expenseand the remaining $38,000 relates to expenses that are paid in the month they are incurred.5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The companydoes not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

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2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. 3. Prepare an Income statement for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. 3. Prepare an Income statement for the quarter ended September 30.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...

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