Question

Following information relates to Acco Co. a. Beginning cash balance on July 1: $45.000 b. Cash receipts from sales: 27% is collected in the month of sale. 50% in the next month and 23% 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: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June (actual). $387,000, and July (budgeted) $600.000 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. 9. Accrued income taxes due in July: $80,000 h. Bank loan interest paid July 31: $5,940. 36,000 on July he accumulated Additional Information: a. Cost of goods sold is 40% of sales. b. Inventory at the end of June is $72,000 and at the end of July is $168,000. c. Salaries payable on June 30 are $45.000 and 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 $5,940 cash payment of interest represents the 1% monthly expense on a bank loan of $594.000 1. Income taxes payable on July 31 are $148,176, and the income tax rate applicable to the company is 35%. 9. The only other balance sheet accounts are: Common Stock, with a balance of $587,620 on June 30 and Retained Earnings, with a balance of S964,800 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 - July 31 --- May --Collected in June Total Sales July Accounts Rec. Credit sales from: May $ $ 417,960 $ $ $ 774.000 291,600 June 1,548,000 1,080,000 1,260,000 3,888.000 356,040 540,000 340,200 1,236,240 July Totals 248.400 919.800 1,168,200 $ $ 417,960 $ 1,065,600 $ $ Calculation of cash payments for merchandise -Paid in--------------- July 31 Accounts Pay. Total Purchases June July Purchases from: June $ $ July Totals 387,000 600.000 987,000 208.980 $ 0 208.980 $ 178,020 $ 324,000 502.020 $ 276.000 276,000 $ $
Please set up the chart exactly as seen, do not add extra boxes or take any boxes out. I get confused very easily, thank you!

Answer 1

ACCO COMPANY Budgeted Income Statement For Month Ended July 31 Sales $1.260.000 $504.000 $756,000 Cost of goods sold Gross profit Operating expenses Salaries expense ($189.900 - $45,000+ $36,000) Depreciation expense Other cash expenses Bank loan interest expense $180.900 $10.800 $135,000 $5,940 Total operating expenses Income before taxes Income tax expense (S423,360 * 35%) Net Income $332.640 $423,360 $148.176 $275,184 ACCO COMPANY Budgeted Balance Sheet As of July 31 Assets Current Assets Cash Accounts receivable Inventory Total current assets Equipment Less: Accumulated depreciation ($252,000+ $10,800) Equipment, net Total Assets Liabilities and Equity Liabilities Accounts payable Salaries payable Income taxes payable $368,380 $1,168,200 $168.000 $1,704,580 $1.440.000 $262,800 $1,177,200 $2,881,780 $276,000 $36.000 $148.176 $460.176 $594.000 $1,054,176 Total current liabilities Bank loan payable Total liabilities Stockholders' Equity Common stock Retained earnings ($964,800 + $275,184) Total Stockholders' equity Total Liabilities and Equity $587.620 $1.239.984 $1.827.604 $2,881,780