Question

Account Balances a. During February, $81,480 was paid to creditors on account, and purchases on account were $104,290. Assuming that the February 28 balance of Accounts Payable was $35,040, determine the account balance on February 1. b. On October 1, the accounts receivable account balance was $50,700. During October, $441,100 was collected from customers on account. Assuming that the October 31 balance was $58,300, determine the fees billed to customers on account during October c. On April 1, the cash account balance was $20,160. During April, cash receipts totaled $306,430 and the Apel 30 balance was $14,520. Determine the cash payments made during April

Answer 1

Answer to first question in the list: a) Balance of Accounts Payable, February 28 Add: Payments made to creditors on account Total credits posted to Accounts Payable Less: Purchases on account during February Balance of Accounts Payable, February 1 $35,040 $81,480 $116,520 $104,290 $12,230 b) Balance of Accounts Receivable, October 31 Add: Collections from customers on account Total credits posted to Accounts Receivable Less: Balance of Accounts Receivable, October 1 Billed to customers on account during October $58,300 $441,100 $499,400 $50,700 $448,700 Balance of Cash, April 1 Add: Cash Receipts during April Total debits posted to Cash account Less: Balance of Cash, April 30 Cash payments made during April $20,160 $306,430 $326,590 $14,520 $312,070