morman 1. The following figures are available: Sales Purchases Sales commission Wages ● 40% of all sales are for cash. 35% of all purchases are for cash. Collections for credit sales are as follows: ● Actual (2020) January ● R 96 000 100 000 400 800 ● February R 120 000 50 000 600 800 March R 60 000 160 000 1700 800 Estimated (2020) May R 20% is collected in the month of the sale and a 2% discount is granted on these collections. 60% is collected in the month following the month of sale. 15% is collected in the second month following the month of sale. The remaining 5% is written off as bad debts. April R 160 000 84 000 800 ? 200 000 60 000 400 ? Plane Limited will make an investment of R30 000 in fixed deposit on 01 April 2020 Interest of R500 per month is expected to be received from 30 April 2020. Creditors are paid 2 months after the date of invoice. Rent expense amounts to R6 000 per month and is payable on the first day of each month. Wages will be increased by 10% in April 2020 and will increase by a further 5% in May 2020. A new machine is expected to be purchased for R25 000 cash in May 2020. Commission is paid to sales personnel in the month following the month in which it was earned. On 31 March 2020 Plane Limited had a debit bank balance of R11 000.

11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases The company predicts that 5 percent of its credit sales will never be collected 35 percent of its sales will be collected in the month of the sale, and the re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements…

Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2017. The Accrued Expenses Payable balance on July 1 is $31,700. The budgeted expenses for the next three months are as follows: July August September Salaries $72,900 $88,800 $98,300 Utilities 6,000 6,700 7,900 Other operating expenses 55,400 60,400 66,500 Total $134,300 $155,900 $172,700 Other operating expenses include $4,000 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on March 1 of the current year. Of the remaining expenses, 75% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on July 1 relates to the expenses incurred in June. Prepare a schedule of cash payments for operations for July, August, and September. Select Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months…

The City of Bedford Falls debt service fund budgeted $150,000 (2 payments of $75,000) for interest and an annual principal payment of $500,000. Funding will be transferred from the general fund at the time payments are to be made. Interest payments will be December 15 and June 15. Principal will be paid on June 15. Journalize the budget for July 1 Journal any necessary December 15 entry(ies) What is the amount of accrued interest to be recorded in the Debt Service Fund at June 30?