Question

Campbell Books expects to purchase the following supplies: May Required purchases (on account) April $118,000 $138,000 June $150,000 points Campbell Books's accountant prepared the following schedule of cash payments for supplies purchases. Campbell Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required Print a. Complete the schedule of cash payments for supplies purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash payments for supplies purchases by filling in the missing amounts June Schedule of Cash Payments for Supplies Purchases April May Payment for current accounts payable $ 106,200 Payment for previous accounts payable 13,000 Total budgeted payments for supplies $ 119,200 Required )

Answer 1

a)

	April	May	June
payment for current accounts payable	106200	138000*90%=124200	150000*90%= 135000
payment for previous accounts payable	13000	118000*10%= 11800	138000*10%= 13800
Total budgeted payment for supplies	119200	136000	148800

**10% of last month purchase balance is paid in current month .

b)Accounts payable at end of second quarter =June purchase * % of amount outstanding

                                             = 150000*10%

                                             = 15000