Corp. requires am X Assignment-Ch. 20X ezto.mheducation.com/hm.tpx a. Beginning
ID: 2414572 • Letter: C
Question
Corp. requires am X Assignment-Ch. 20X ezto.mheducation.com/hm.tpx a. Beginning cash balance on July 1: $45,000 b. Cash receipts from sales: 21% is collected in the month of sale, 50% n the next month, and 29% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,548,000, June (actual), $1,080,000, and July (budgeted), $1,260,000 c. Payments on merchandise purchases 42% in the month of purchase and 58% in the month following purchase. Purchases amounts are: June (actual), $387,000, and July (budgeted), S600,000 d. Budgeted cash disbursements for salaries in July: $189,900 e. Budgeted depreciation expense for July: $10,800. f. Other cash expenses budgeted for July: $135,000 g. Accrued income taxes due in July: $80,000 h. Bank loan interest paid July 31: $5,940. Additional Information: a. Cost of goods sold is 31% of sales b. Inventory at the end of June is $72.000 and at the end of July is $281.400 c. Salaries payable on June 30 are $45,000 änd are expected to be $36,000 on July 31 d. The equipment account balance is $1,440,000 on July 31. On June 30, the accumulated depreciation on equipment is $252.000 e The S5 940 cash payment of interest represents the 1% month expense onabank loan of S 940 f. Income taxes payable on July 31 are $214,704, and the income tax rate applicable to the company is 4096 g. The only other balance sheet accounts are: Common and Retained Earnings, with a balance of $964,800 on June 30 Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31 Calculation of cash receipts from sales ?.collected in June July 31 Accounts Rec. Total Sales May Credit sales from May June July Totals 1,548,000 S 325,080 1.080,000 1.260,000 $3.888 000 S 325.080 $ 01 Calculation of cash payments for merchandise Paid in July 31 Total Purchases June JulyAccounts Pay Purchases from June 387.000 ) Type here to searchExplanation / Answer
Total Cash received from Debtors in july is $12,53520
348000
Retained Earnings 964800
Workings : Closing Cash Balance
Collected in Jul-31 Credit Sales from Total Sales May June July Accounts Receivables May 1548000 325080(21%) 774000(50%) 448920(29%) June 1080000 226800(21%) 540000(50%) 313200(29%) July 1260000 264600(21%) 995400 (50%) Total 3888000 325080 1000800 1253520 1308600