Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Concept explainers
Question
Chapter 14, Problem 19P
a)
To determine
Construct a schedule of cash payments for the head selling and administrative expenses
b)
To determine
Determine the of utilities payable for the month September 30.
c)
To determine
Determine the amount of sales commissions’ payable as of September 30
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b.
a.
Prepare a schedule of cash payments for Fein Company for
the month of August.
OBJECTIVE 3
C.
Exercise 9-45 Cash Budget
The owner of a building supply company has requested a
cash budget for June. After examining the records of the
company, you find the following:
Cash balance on June 1 is R7,360.
b. Actual sales for April and May are as follows:
d.
F.
a.
April
May
Cash sales
R180,000
Credit sales
to 00
R530,000
Total sales
R389,000
c. Credit sales are collected over a three-month period: R
40% in the month of sale, 30% in the second month, and
20% in the third month. The sales collected in the third
month are subject to a 2% late fee, which is paid by those
customers in addition to what they owe. The remaining
sales are uncollectible.
d. Inventory purchases average 64% of a month's total B
sales. Of those purchases, 20% are paid for in the month
of purchase. The remaining 80% are paid for in the
following month.
Salaries and wages total R117,500 per month, including a
R45,000…
10
Walton is a retail company specializing in men's hats. Its budget director prepared the list of expected operating
expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the
month following their incurrence. July is the first month of operations, so there are no beginning account balances.
Salary expense
Sales commissions (4)
percent of sales)
Supplies expense
Utilities
Depreciation on store
equipment
Rent
Miscellaneous
Total S&A expenses
before interest
July
$18,800
3,000
260
2,300
2,500
2,500
6,300 6,300
620
620
$33,780 $33,810
$18, 800
August September
$18,800
3,000
3,000
290
320
2,300
2,300
2,500
6,300
620
$33,840
Required
a. Prepare a schedule of cash payments for selling and administrative expenses.
b. Determine the amount of utilities payable as of September 30.
c. Determine the amount of sales commissions payable as of September 30.
Complete this question by entering your answers in the tabs below.
Total payments for…
Schedule of Cash Payments for a Service Company
EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $33,700.
The budgeted expenses for the next three months are as follows:
Salaries
Utilities
Other operating expenses
Total
January
February
March
$77,500
$94,400
$104,500
6,400
7,100
8,400
59,700
$143,600
65,100
$166,600
71,600
$184,500
Other operating expenses include $4,200 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of
the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January
1 relates to the expenses incurred in December.
Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers.
EastGate Physical Therapy…
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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