Question

Use the information in each of the following separate cases to calculate the unknown amount. a. Corentine Co. had $162,000 of accounts payable on September 30 and $137.500 on October 31. Total purchases on account during October were $291,000. Determine how much cash was paid on accounts payable during October b. On September 30, Valerian Co, had a $107,500 balance in Accounts Receivable. During October, the company collected $107,890 from its credit customers. The October 31 balance in Accounts Receivable was $99.000. Determine the amount of sales on account that occurred in October c. During October, Alameda Company had $112,500 of cash receipts and $113,150 of cash disbursements. The October 31 Cash balance was $23,600. Determine how much cash the company had at the close of business on September 30,

Answer 1

	Let us understand and find the answer with the help of Ledger posting.
Part a	Accounts Payable
	Oct	To Cash(Balancing Figure)	$3,15,500	Sep-30	Opening Balance	$1,62,000
				Oct	By Purchase	$2,91,000
	Oct-31	Closing Balance	$1,37,500
		Total	$4,53,000		Total	$4,53,000
Part b	Accounts Receivable
	Sep-30	Opening Balance	$1,07,500	Oct	Cash	$1,07,890
	Oct	To Sales(Balancing Figure)	$99,390
				Oct-31	Closing Balance	$99,000
		Total	$2,06,890		Total	$2,06,890
Part c	Cash
	Sep-30	Opening Balance(Balancing Figure)	$24,250	Oct	Cash disbursements	$1,13,150
	Oct	Cash Receipts	$1,12,500
				Oct-31	Closing Balance	$23,600
		Total	$1,36,750		Total	$1,36,750