Information pertaining to Noskey Corporation's sales revenue follows: Cash sales Credit sales Total sales November 2021 (Actual) $ 100,000 264,000 $ 364,000 December 2021 (Budgeted) $ 112,000 388,000 $ 500,000 January 2022 (Budgeted) $ 68,000 196,000 $ 264,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of Inventory each month nclude 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All Inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2021 from November 2021 credit sales. 2. Budgeted total cash receipts in January 2022. 3. Budgeted total cash payments In December 2021 for Inventory purchases. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Budgeted total cash receipts in January 2022. Cash sales in January NOSKEY CORPORATION Budgeted Total Cash Receipts January 2022 Collections from credit sales in January Total collectible from credit sales Percentage to be collected in January Collections from credit sales in December Total collectible from credit sales Percentage to be collected in January Budgeted total cash receipts in January % 0 % 0 0
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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