Question

Vernon Books expects to purchase the following supplies: Required purchases (on account) April $111,000 $131,000 $143,000 Vernon Books's accountant prepared the following schedule of cash payments for supplies purchases. Vernon 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 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 $ 99,900 Payment for previous accounts payable 11,000 Total budgeted payments for supplies $ 110,000 Required 3 >

Answer 1

1.

Schedule of Cash Payments for Supplies Purchases
	April	May	June
Payment for current accounts payable	$99,900	$117,900 (131,000*90%)	$128,700 (143,000*90%)
Payment for previous accounts payable	11,000	11,100 (111,000*10%)	13,100 (131,000*10%)
Total budgeted payment for supplies	$110,900	$129,000	$141,800

2.

Accounts payable at the end of second quarter = $14,300 ($143,000*10%)