
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I could really use some help with this problem also there are 2 more columns not shown it is the 4th quarter column and the annual column thx a lot

Transcribed Image Text:Michael Jones is one of Texas's premiere party planners. She purchases a variety of supplies, such as plastic tableware, stemware,
and decorations, throughout the year. Michael has prepared the following purchases budget for the coming year:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Budgeted purchases
$280,000
$480,000
$495,000
$575,000
Historically, Michael has paid for 40% of her purchases in the quarter of purchase and 60% in the quarter following purchase. On
December 31 of this year Michael had a $250,000 accounts payable balance.
Prepare Michael's cash payments budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not
enter 0.)
1st Quarter
2nd Quarter
3rd Quarter
24
$
24
A/P from last year
1st quarter purchases
2nd quarter purchases
3rd quarter purchases

Transcribed Image Text:payable balance.
Prepare Michael's cash payments budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not
enter 0.)
1st Quarter
2nd Quarter
3rd Quarter
A/P from last year
24
2$
$4
%24
1st quarter purchases
2nd quarter purchases
3rd quarter purchases
4th quarter purchases
$4
$4
2$
Total
24
Calculate the accounts payable balance at the end of 4th Quarter.
$4
Accounts Payable balance at the end of 4th Quarter
eTextbook and Media
Expert Solution

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Step 1
given that
Accounts payable balance on 31 DEC = $ 250,000
M paid 40% of purchases in same quarter
60% of purchases in following quarter
Step by stepSolved in 3 steps

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