Question

hello pls I need help and steps on how to do this, this is the 2nd time I'm posting it, it wasn't correct. chapter 22 accounting I find it complicated, unlike other chapters. I will highly appreciate it, secondly the steps and making sure is correct as I'm struggle with it.

You recently began a job as an accounting intern at River Golf Park. Your first task was to help prepare the cash budget for April and May. ​Unfortunately, the computer with the budget file​ crashed, and you did not have a backup or even a paper copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the​ budget, you may have just enough information to reconstruct the budget. LOADING...​(Click the icon to view the cash​ budget.)

Golf Park eliminates any cash deficiency by borrowing the exact amount needed from First Street​ Bank, where the current interest rate is

8 % per year. River Golf Park first pays interest on its outstanding debt at the end of each month. The company then repays all borrowed amounts at the end of the month with any excess cash above the minimum required but after paying monthly interest expenses. River does not have any outstanding debt on April

1.

Complete the cash budget. Round interest expense to the nearest whole dollar.

River Golf Park
Cash Budget
Two Months Ended May 31
	April	May
Beginning cash balance	$16,700	$ ?
Cash receipts	?	81,000
Cash from sale of plant assets	0	2,200
Cash available	107,200	?
Cash payments:
Purchase of inventory	?	44,000
Selling and administrative expenses	47,400	?
Interest expense	?	?
Total cash payments	98,000	?
Ending cash balance before financing	?	22,200
Minimum cash balance desired	(20,000)	(20,000)
Cash excess (deficiency)	?	?
Financing:
Borrowing	?	?
Principal repayments	?	?
Total effects of financing	?	?
Ending cash balance	?	?

PrintDone

​(Complete all input boxes. Enter a​ "0" for zero balances. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of financing with a minus sign when the amount is a net outflow. Round interest expense to the nearest whole​ dollar.)

River Golf Park

Cash Budget

Two Months Ended May 31

	April
Beginning cash balance	$16,700
Cash receipts
Cash from sale of plant assets	0
Cash available	107,200
Cash payments:
Purchase of inventory
Selling and administrative expenses	47,400
Interest expense
Total cash payments	98,000
Ending cash balance before financing
Minimum cash balance desired	(20,000)
Cash excess (deficiency)
Financing:
Borrowing
Principal repayments
Total effects of financing
Ending cash balance

Answer 1

April:

Beginning Loan Balance = $0

Interest Expense = $0

May:

Beginning Loan Balance = $10,800

Interest Expense = $10,800 * 8% * 1/12
Interest Expense = $72