The following account information was gathered from Jeffco for April. Accounts p
ID: 2393895 • Letter: T
Question
The following account information was gathered from Jeffco for April. Accounts payable Accrued liabilities Inventory Prepaid insurance Prepaid miscellaneous expense Utilities payable Ending Beginning S65,000 $86,000 7,000 18,000 5,000 3,000 3,000 12,000 25,000 6,000 1,000 2,000 The following expenses were incurred in April: Cost of goods sold Insurance expense Utilities expense Miscellaneous expense $645,000 17,000 11,000 248,000 Required 1.Determine the cash paid for inventory during April. 2. Determine the cash paid for insurance during April. 3. Determine the cash paid for utilities during April. 4. Determine the cash paid for miscellaneous expenses during April.Explanation / Answer
Rreq 1: Cash paid for inventory: Cost of Goods sold 645,000 Add: ending inventory 25,000 Less: Beginning Inventory 18,000 Purchases 652,000 Add: Beginning Accounts payable 86,000 Less: ending Accounts payable 65,000 Cash paid for inventory: 673,000 Req 2: Cash paid for insurance: Insurance expense 17000 Add: Prepaid at the end 6000 Less: Prepaid in the beginning 5000 Cash paid for insurance: 18000 Req 3: Cash paid for utilities: Utilities expense for the period 11000 Add:payable in the beginning 3000 Less: payable at the end 2000 Cash paid for utilities: 12000 Req 4: Cash paid for Misc expense: Misc expense for the period 248000 Add: prepaid at the end 1000 Less: prepaid in the beginning 3000 Cash paid for Misc expense: 246000