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In: Accounting

During February, $76,790 was paid to creditors on account, and purchases on account were $98,290. Assuming...

During February, $76,790 was paid to creditors on account, and purchases on account were $98,290. Assuming the February 28 balance of Accounts Payable was $33,020, determine the account balance on February 1.

On October 1, the accounts receivable account balance was $44,700. During October, $388,900 was collected from customers on account. Assuming the October 31 balance was $51,400, determine the fees billed to customers on account during October.

On April 1, the cash account balance was $12,970. During April, cash receipts totaled $197,140 and the April 30 balance was $9,340. Determine the cash payments made during April.

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Expert Solution

Answer

Payments made to creditors during February = $76,790

Purchase on account during February = $98,290

Closing Balance of Accounts Payable on 28 February= $33,020

Opening Balance of Accounts Payable on 1 February = ?

Opening Balance of Accounts Payable on 1 February + Purchases made on account during February - Payments made to creditors during February = Closing Balance of Accounts Payable on 28 February

So,

Opening Balance of Accounts Payable on 1 February = Closing Balance of Accounts Payable on 28 February + Payments made to creditors during February - Purchases made on account during February

= $33,020 + $76,790 - $98,290

= $11,520

Balance of Accounts Payable on 1 February is $11,520

Opening Balance of Accounts Receivable on 1st October = $44,700

Amount collected from customers on account during October = $388,900

Closing Balance of Accounts Receivable on 31 October = $51,400

Fees billed to customer on account during October = ?

Opening Balance of Accounts Receivable on 1 October - Amount collected from customers on account during October + Fees billed to customers on account during October = Closing Balance of Accounts Receivable on 31 October

So,

Fees billed to customers on account during October = Closing Balance of Accounts Receivable on 31 October - Opening Balance of Accounts Receivable on 1 October + Amounts collected from customers on account during October

= $51,400 - $44,700 + $388,900

= $395,600

Fees billed to customers on account during October is $395,600

Opening Balance of Cash Account on 1 April = $12,970

Cash receipts during April = $197,140

Closing Balance of Cash Account on 30 April = $9,340

Cash payments made during April = ?

Opening Balance of Cash Account on 1 April + Cash receipts during April - Cash payment made during April = Closing Balance of Cash Account on 30 April

So,

Cash Payment made during April = Opening Balance of Cash Account on 1 April + Cash receipts during April - Closing Balance of Cash Account on 30 April

= $12,970 + $197,140 - $9,340

= $200,770

Cash payments made during April are $200,770

ekkarill92 answered 2 years ago
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