Fundamental Accounting Principles -Hardcover
Fundamental Accounting Principles -Hardcover
22nd Edition
ISBN: 9780077862275
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
bartleby

Concept explainers

Question
Book Icon
Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution
Check Mark

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

    July August September
    Budgeted Cash Receipts $ 59,680 $ 66,840 $ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

    Cash Receipts July August September
    Budgeted Sales (A)
    $ 63,400
    $ 80,600
    $ 48,600
    Cash Sales (B) = (A*20%)
    $ 12,680
    $ 16,120
    $ 9,720
    Credit Sales (C) = (A*80%)
    $ 50,720
    $ 64,480
    $ 38,880
    Collection of Sales:


    Cash Sales (in the same month)
    $ 12,680
    $ 16,120
    $ 9,720
    Credit Sales (in the next month)
    $ 47,000
    $ 50,720
    $ 64,480
    Budgeted Cash Receipts $ 59,680 $ 66,840 $ 74,200

Conclusion
The Cash receipts Budget for July, August and September is as follows:

    July August September
    Budgeted Cash Receipts $ 59,680 $ 66,840 $ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution
Check Mark

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

    Cash Budget:July August September
    Beginning Cash Balance $ 12,900 $ 12,600 $ 24,371
    Budgeted Cash Receipts
    $ 59,680
    $ 66,840
    $ 74,200
    Budgeted Cash payments:



    Direct Material
    $ 12,480
    $ 9,900
    $ 10,140
    Direct Labor
    $ 10,400
    $ 8,250
    $ 8,450
    Factory Overhead
    $ 18,720
    $ 14,850
    $ 15,210
    Sales Commission
    $ 6,340
    $ 8,060
    $ 4,860
    Office Salaries
    $ 4,600
    $ 4,600
    $ 4,600
    Rent
    $ 7,100
    $ 7,100
    $ 7,100
    Interest on loan
    $ 26
    $ 23
    $ -
    Total Budgeted Cash Payments
    $ 59,666
    $ 52,783
    $ 50,360
    Cash Surplus/(Deficit) $ 12,914 $ 26,657 $ 48,211




    Beginning Loan balance
    $ 2,600
    $ 2,286
    $ -
    Loan Taken

    $ -

    Loan Paid
    $ 314
    $ 2,286

    Ending Loan balance
    $ 2,286
    $ -
    $ -




    Ending Cash balance $ 12,600 $ 24,371 $ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

    Cash Budget:July August September
    Beginning Cash Balance (A)$ 12,900 $ 12,600 $ 24,371
    Budgeted Cash Receipts (B)
    $ 59,680
    $ 66,840
    $ 74,200
    Budgeted Cash payments:



    Direct Material
    $ 12,480
    $ 9,900
    $ 10,140
    Direct Labor
    $ 10,400
    $ 8,250
    $ 8,450
    Factory Overhead
    $ 18,720
    $ 14,850
    $ 15,210
    Sales Commission (10% of sales)
    $ 6,340
    $ 8,060
    $ 4,860
    Office Salaries
    $ 4,600
    $ 4,600
    $ 4,600
    Rent
    $ 7,100
    $ 7,100
    $ 7,100
    Interest on loan (1% of beginning loan balance)
    $ 26
    $ 23
    $ -
    Total Budgeted Cash Payments (C)
    $ 59,666
    $ 52,783
    $ 50,360
    Cash Surplus/(Deficit) (D) =A+B-C =$ 12,914 $ 26,657 $ 48,211




    Beginning Loan balance
    $ 2,600
    $ 2,286
    $ -
    Loan Taken (E)

    $ -

    Loan Paid (F)
    $ 314
    $ 2,286

    Ending Loan balance
    $ 2,286
    $ -
    $ -




    Ending Cash balance = D+E-F=$ 12,600 $ 24,371 $ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 22 Solutions

Fundamental Accounting Principles -Hardcover

Ch. 22 - Apple regularly uses budgets. What is the...Ch. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1QSCh. 22 - Budgeting process C1 Good management includes good...Ch. 22 - Components of a master budget C2 Identify which of...Ch. 22 - Prob. 4QSCh. 22 - Prob. 5QSCh. 22 - Prob. 6QSCh. 22 - Prob. 7QSCh. 22 - Prob. 8QSCh. 22 - Prob. 9QSCh. 22 - Prob. 10QSCh. 22 - Prob. 11QSCh. 22 - Prob. 12QSCh. 22 - Prob. 13QSCh. 22 - Prob. 14QSCh. 22 - Prob. 15QSCh. 22 - Prob. 16QSCh. 22 - Prob. 17QSCh. 22 - Prob. 18QSCh. 22 - Prob. 19QSCh. 22 - Prob. 20QSCh. 22 - Prob. 21QSCh. 22 - Prob. 22QSCh. 22 - Prob. 23QSCh. 22 - Prob. 24QSCh. 22 - Prob. 25QSCh. 22 - Prob. 26QSCh. 22 - Prob. 27QSCh. 22 - Prob. 28QSCh. 22 - Prob. 29QSCh. 22 - Prob. 30QSCh. 22 - Activity-based budgeting Activity-based budgeting...Ch. 22 - Prob. 32QSCh. 22 - Exercise 22-1 Budget consequences C1 Participatory...Ch. 22 - Exercise 22-2 Master budget definitions C2 Match...Ch. 22 - Prob. 3ECh. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - Prob. 12ECh. 22 - Prob. 13ECh. 22 - Prob. 14ECh. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 17ECh. 22 - Prob. 18ECh. 22 - Prob. 19ECh. 22 - Prob. 20ECh. 22 - Prob. 21ECh. 22 - Prob. 22ECh. 22 - Prob. 23ECh. 22 - Prob. 24ECh. 22 - Prob. 25ECh. 22 - Prob. 26ECh. 22 - Prob. 27ECh. 22 - Prob. 28ECh. 22 - Prob. 29ECh. 22 - Prob. 30ECh. 22 - Prob. 31ECh. 22 - Prob. 32ECh. 22 - Prob. 33ECh. 22 - Exercise 22-35 Activity-based budgeting A1 Render...Ch. 22 - Prob. 1APSACh. 22 - Prob. 2APSACh. 22 - Prob. 3APSACh. 22 - Prob. 4APSACh. 22 - Prob. 5APSACh. 22 - Prob. 6APSACh. 22 - Prob. 7APSACh. 22 - Prob. 8APSACh. 22 - Problem 22-1B Manufacturing: Preparing production...Ch. 22 - Prob. 2BPSBCh. 22 - Prob. 3BPSBCh. 22 - Prob. 4BPSBCh. 22 - Prob. 5BPSBCh. 22 - Prob. 6BPSBCh. 22 - Prob. 7BPSBCh. 22 - Prob. 8BPSBCh. 22 - Prob. 22SPCh. 22 - Prob. 1BTNCh. 22 - Prob. 2BTNCh. 22 - Both the budget process and budgets themselves can...Ch. 22 - The sales budget is usually the first and most...Ch. 22 - Prob. 5BTNCh. 22 - Prob. 6BTNCh. 22 - Prob. 7BTNCh. 22 - To help understand the factors impacting a sales...Ch. 22 - Prob. 9BTN
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education