Question

Account Balances

a. During February, $85,240 was paid to creditors on account, and purchases on account were $109,110. Assuming that the February 28 balance of Accounts Payable was $36,650, determine the account balance on February 1.
$

b. On October 1, the accounts receivable account balance was $34,700. During October, $301,900 was collected from customers on account. Assuming that the October 31 balance was $39,900, determine the fees billed to customers on account during October.
$

c. On April 1, the cash account balance was $17,240. During April, cash receipts totaled $262,050 and the April 30 balance was $12,410. Determine the cash payments made during April.
$

Answer 1

Determine the account balance on February 1 as follows: Particulars Closing Accounts payable Add : Payments Less: Purchases Opening Accounts payable Amount $36,650 $85.240 -$109,110 $12.780 Determine the fees billed to customers on account during October as follows: Particulars Closing Accounts receivable Add: Collection from customers Less : Opening Accounts receivable Fees billed to customers on account during October Amount $39.900 $301,900 -$34,700 $307,100 Determine the cash payments made during April as follows: Particulars Opening Cash Add: Cash receipts Less Closing cash Cash Payments Amount $17,240 $262,050 -$12,410 $266,880