Question

Required purchases (on account) April $102,000 May $122,000 June $134,000 Solomon Books' accountant prepared the following schedule of cash payments for inventory purchases. Solomon Books 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 inventory 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 inventory purchases by filling in the missing amounts. Schedule of Cash Payments for Inventory Purchases April May June Payment for current accounts payable S 91,800 Payment for previous accounts payable 11,000 Total budgeted payments for inventory S 102,800 $ 0 S 0

Answer 1

Required A Schedule of cash Payment for Inventory Purchased April May June Payment for Current Account Payable $91,800 $109,800 $120,600 Payment for Previous Account Payable** $11,000 $10,200 $12,200 Total Budgeted payments for inventory $102,800 $120,000 $132,800 * * Current Account payable = Required Purchase * 90% Previous Account payable = Required Purchase of previous * 10% ** Required B Account Payable $13,400 Above amount is balance amount payable for the month of June i.e 10% of June Required Purchase

Hope this meets your purpose and added contribution towards your Success. Do like the answer if it was helpful.

Feel free to ask in case of any concern.

Best of Luck...!!