Please don't give image based answer..thanku 10 Prime Products hopes to borrow $87,000 on April 1 and repay it plus interest of $1,220 on June 30.The following data are available for the months April through June, during which the loan will be used: a.On April 1, the start of the loan period, the cash balance will be $39,000. Accounts receivable on April 1will total $170, 800, of which 30 $146,400 will be collected during April and $19, 520 will be collectedduring May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales arecollected in the month of sale, 60% in the month following sale, and 8% in the second month following sale.The other 2% are bad debts that are never collected. Budgeted sales and expenses for the threemonthperiod follow: \table[[, April, May, June], [Sales (all on account), $242,000, $618,000, $310,000Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a cash budget, by month and in total, for the three-month period. Assume the $87,000 loan is made on April 1 andrepaid with interest on June 30.Note: Cash deficiency, repayments and interest should be indicated by a minus sign.Beginning cash balanceAdd receipts:Collections from customersTotal cash availableLess cash disbursements:Merchandise purchasesPayrollLease paymentsAdvertisingEquipment purchasesTotal cash disbursementsExcess (deficiency) of cash available overdisbursementsFinancing:BorrowingsRepaymentsInterestTotal financingEnding cash balancePrime ProductsCash Budget$3$April39,000 $219,000258,000< Required 1174,500✔ 213,00019,60019,60029,200✔62,600✔0285,900(27,900)000087,000✔0087,00059,100May59,100 $$350,120✔409,22029,200✔62,600✔0324,40084,82000084,820$Required 2 >June84,820483,160567,980181,500(24,800✔29,200✔62,600 X112,000410,100157,8800(1,220) X(87,000) X(88,220)QuarterS 39,000✔69,660 $1,052,280✔1,091,280569,00064,000✔87,600✔172,800 X112,000✔1,005,40085,88087,000✔(1,220) X(87,000) X(1,220)84,660

Cash Budget: Cash Budget is a schedule to record cash inflows and outflows over a period with a view…

Answered: Prime Products hopes to borrow $87,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 517,000 409,500 480,000 $ 459,400 351,900 524,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March SA 40,000 $ 40,000 $ 74,168 517,000 409,500 480,000 557,000 449,500…
Prime Products hopes to borrow $73,000 on April 1 and repay it plus interest of $1,080 on June 30. The following data are available for the months April through June, during which the loan will be used: On April 1, the start of the loan period, the cash balance will be $41,800. Accounts receivable on April 1 will total $182,000, of which $156,000 will be collected during April and $20,800 will be collected during May. The remainder will be uncollectible. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: April May June Sales (all on account) $316,000 $575,000 $264,000 Merchandise purchases $214,000 $193,000 $ 151,500 Payroll $ 34,200 $ 34,200 $27,300 Lease payments $31,600 $31,600 $ 31,600 Advertising $ 74,000 $ 74,000 $ 43,000 Equipment purchases $70,500 Depreciation…
Prime Products hopes to borrow $87,000 on April 1 and repay it plus interest of $1,220 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $39,000. Accounts receivable on April 1 will total $170,800, of which $146,400 will be collected during April and $19,520 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation Required 1 Required 2 April $ 242,000 $ 213,000 $ 19,600 $ 29,200 $ 62,600 - Beginning cash balance Add receipts: Collections from customers May $…
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