Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase.
The following information is available for the months of June, July, and August, which are Paul’s busiest months:
Fill In X's
June | July | August | |
Budgeted Cash Receipts | X | X | X |
Budgeted Cash Payments | X | X | X |
Cash | x |
June 1 Balance | x |
Add: Total Cash Receipts | x |
Less:Total Cash Payments | x |
August 31 Payments | x |
Supplies inventory | x |
30% of August Purchases | x |
Accounts Recievable | x |
50% Of August purchases | x |
FILL IN X'S
Required:
1. Compute budgeted cash receipts and budgeted cash payments for each month.
2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts:
1.
Budgeted Cash Receipts | |||
June | July | August | |
April sales | $1,630 (16,300*10%) | ||
May sales | 9,080 (22,700*40%) | 2,270 (22,700*10%) | |
June sales | 12,150 (24,300*50%) | 9,720 (24,300*40%) | 2,430 (24,300*10%) |
July sales | 18,250 (36,500*50%) | 14,600 (36,500*40%) | |
August sales | 19,450 (38,900*50%) | ||
Budgeted cash receipts | $22,860 | $30,240 | $36,480 |
Budgeted Cash Payments | |||
June | July | August | |
May purchases | $2,500 (5,000*50%) | ||
June purchases | 4,500 (9,000*50%) | 4,500 (9,000*50%) | |
July purchases | 8,600 (17,200*50%) | 8,600 (17,200*50%) | |
August purchases | 6,150 (12,300*50%) | ||
Budgeted cash payments | $7,000 | $13,100 | $14,750 |
2.
Cash | |
June 1, Balance | $14,500 |
Add: Total cash receipts (22,860+30,240+36,480) | 89,580 |
Less: Total cash payments (7,000+13,100+14,750) | -34,850 |
August 31, cash balance | 69,230 |
Supplies inventory | |
30% of $12,300 | 3,690 |
Accounts receivable | |
(36,500*10%)+(38,900*50%) | 23,100 |
Accounts payable | |
(12,300*50%) | 6,150 |
Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are...
Paul’s Pool Service provides pool cleaning, chemical
application, and pool repairs for residential customers. Clients
are billed weekly for services provided and usually pay 60 percent
of their fees in the month the service is provided. In the month
following service, Paul collects 35 percent of service fees. The
final 5 percent is collected in the second month following service.
Paul purchases his supplies on credit, and pays 50 percent in the
month of purchase and the remaining 50 percent...
Paul’s Pool Service provides pool cleaning, chemical
application, and pool repairs for residential customers. Clients
are billed weekly for services provided and usually pay 40 percent
of their fees in the month the service is provided. In the month
following service, Paul collects 50 percent of service fees. The
final 10 percent is collected in the second month following
service. Paul purchases his supplies on credit, and pays 50 percent
in the month of purchase and the remaining 50 percent...
Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 70 percent of their fees in the month the service is provided. In the month following service, Paul collects 25 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 80 percent of their fees in the month the service is provided. In the month following service, Paul collects 15 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 40 percent of their fees in the month the service is provided. In the month following service, Paul colects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 70 percent of their fees in the month the service is provided. In the month following service, Paul collects 25 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent...