Question

Bookmarks People Tab Window Help D Sun 7:40 PM 0 Assignmer X i CengageNOW. X 1 CengageNOW2 X : Cengage Sign in X Untitled docume X a/takeAssignment/takeAssignment Main.do?invokeru&takeAssignmentSessionLocator &inprogress=false Image Res. Update Apple ID Settings Some account services will not be available until you sign in again eBook Show Me How Calculator Print Item Account Balances a. During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1. b. On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770, determine the fees billed to customers on account during October. c. On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April

Answer 1

Answers:

a. $45,000

b. $464,570

c. $238,050

Explanation:

a.

Balance of Accounts Payable on Feb 28 = $59,900

Less: Purchases on account made on Feb = $(201,400)

Add: Cash paid to creditors on Feb = $186,500

Balance of Accounts Payable on Feb 1 = $45,000

b.

Accounts Receivable balance on October 31= $130,770

Add:Cash collected from customers on account=$(449,600)

Less :Accounts Receivable balance on October 31 = $115,800

Fees bailed to customers on account during October =

$464,570

c.

Cash balance on April 1 = $46,220

Add : Cash Receipts = $248,600

Less: Cash balance on April 31= $(56,770)

Cash payments made during April = $238,050