Question

Exercise 9-21 Missing Amounts; Various Types of Budgets (LO 9-3, 9-5, 9-6) For each independent situation complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required Required Required 2 3 4 5 Fill in the missing amounts in the following schedules. Half of each month's sales are on account. March sales amounted to $183,000. 60% of credit sales is collected in the month of sale; 40% is collected in the following month. Show less April May $ 244,000 $ 183,000 June Sales Cash receipts: From cash sales From sales on account Total cash receipts $ 137,400 103,700 Required 1 Required 2 >

Answer 1

Solution:

	April	May	June
Sales	$244,000	$183,000	274,800 (137400*100/50)
Cash receipts
From cash sales	122,000 (244000 x 50%)	91,500 (183000 x 50%)	$137,400
From sales on account	109,800 [(183000 x 50% x 40%) +(244000 x 50% x 60%)]	103,700	119,040 [(183000x50%x40%)+(274800 x 50% x 60%)]
Total cash receipts	231,800 (122000+109800)	195,200 (91500+103700)	256,440 (137400+119040)

Accounts payable 12/31/x0	606,000
Purchases of goods and services on account during 20x1	244,000
Payments of accounts payable during 20x1 (606000+244000-808000)	(42,000)
Accounts payable, 12/31/x1	808,000

Accounts receivable , 12/31/x0	1,720,000
Sales on account during 20x1	4,524,000
Collections of accounts receivable during 20x1	(3,916,000)
Accounts receivable, 12/31/x1 (1720000+4524000-3916000)	2,328,000

Accumulated depreciation, 12/31/x0	$407,000
Depreciation expense during 20x1	76,000
Accumulated depreciation 12/31/x1 (407000+76000)	483,000

Retained earnings 12/31/x0	$1,538,900
Net Income for 20x1	300,600
Dividends paid in 20x1	0
Retained earnings 12/31/x1 (1538900+300600)	1,839,500