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Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expectsb. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second q

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Answer #1
  • Requirement [a]

April

May

June

Payment for current accounts payable

$90,000

$108,000

$118,800

Payment for previous accounts payable

$7,000

$10,000

$12,000

Total Budgeted payments for inventory

$97,000

$118,000

$130,800

--Working

April

May

June

Payment for current accounts payable

90000

=120000*90%

=132000*90%

Payment for previous accounts payable

7000

=100000*10%

=120000*10%

  • [b]

Amount of Accounts Payable on Balance Sheet

$13,200

[$ 132000 June purchase x 10% to be paid in Jul]

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