Question
In: Accounting
Some Company Cash Budget Given Information For theYear Ended December 31, 2020 Some Company has asked...
| Some Company | |
| Cash Budget Given Information | |
| For theYear Ended December 31, 2020 | |
| Some Company has asked you to prepare a cash budget for the year 2020 using the following information: | |
| Projected cash balance at January 1 | 50,000 |
| Cash balance desired December 31 | 65,000 |
| Projected sales by quarter (collected 70% in the quarter of sale and 20% in the quarter after sale, with the remaining 10% uncollectible): | |
| Accounts recievable from 4th quarter 2019 (of which 20,000 is collectible and 10,000 is uncollectible) | 30,000 |
| Sales Quarter 1 | 145,000 |
| Sales Quarter 2 | 250,000 |
| Sales Quarter 3 | 160,000 |
| Sales Quarter 4 | 240,000 |
| Projected 2020 sale of excess land: | |
| Original cost | 40,000 |
| Accumulated depreciation | 0 |
| Book value | 40,000 |
| Cash expected to be received | 75,000 |
| Gain on sale expected | 35,000 |
| Expected federal income tax refund from 2020 correction of error on 2018 tax return | 14,000 |
| Projected 2020 transactions, to be paid in 2020, unless otherwise noted: | |
| Purchases of merchandise inventory | 410,000 |
| Operating expenses: | |
| Sales and office salaries | 121,000 |
| Office utilities | 9,000 |
| Insurance expense (taken from Prepaid Insurance) | 6,500 |
| Depreciation of building and equipment | 55,000 |
| Amortization of copyright | 15,000 |
| Purchases of office equipment | 20,000 |
| Cash dividend (declared in December 2020; to be paid in January 2021 | 28,000 |
| The company has a line of credit at the bank which allows borrowing up to $500,000. Currently, the company has loans of $250,000 taken out two years ago at 10% interest. Interest is due quarterly on March 31, June 30, September 30 and December 31. | |
The amounts are listed in the above problem; "Some Company has asked you to prepare a cash budget for the year 2020 using the following information"
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following information was gathered for Zeba Company for the year ended December 31, 2020: Budgeted...
The following information was gathered for Zeba Company for the
year ended December 31, 2020:
Budgeted
Actual
Direct labor-hours
50,000 DL-hr
60,000 DL-hr
Factory overhead
$550,000
$600,000
Assume that the cost-allocation base is direct labor-hours.
The journal entry to write off over-/under-allocated overhead at
year end is:
Group of answer choices
DR Manufacturing overhead
allocated
$660,000
CR Cost of Goods Sold $ 60,000
CR Manufacturing overhead control
(actual)
$600,000
DR Manufacturing overhead
allocated
$550,000
DR Cost of Goods...
Monty Corporation has provided the following information for the year ended December 31, 2020. Monty Corporation...
Monty Corporation has provided the following information for the
year ended December 31, 2020.
Monty Corporation
Income Statement
For the Year Ended December 31, 2020
Revenue
Service
Revenue
102,500
Dividend
Revenue
11,000
$113,500
Operating Expenses
Supplies
Expense
2,200
Depreciation
Expense
20,900
Advertising
Expense
1,000
Meals and
Entertainment Expense
6,000
Rent
Expense
9,400
Litigation
Expense
8,300
Salaries
and Wages Expense
40,600
Warranty
Expense
4,100
92,500
Operating Income before income tax
$21,000
Additional Information:
1.
Monty is privately owned, and uses ASPE....
You have been asked to prepare a December cash budget for Garrick Company. The following information...
You have been asked to prepare a December cash budget for
Garrick Company. The following information is available for
December for Garrick Company’s operations:
a. The cash balance on December 1 is $44,400.
b. Actual sales for October and November and expected sales for
December are as follows: October November December Sales on account
$500,000 $700,000 $720,000
c. Sales on account are collected over a three-month period as
follows: 30% collected in the month of sale and 60% collected in...
You have been asked to prepare a December cash budget for Garrick Company. The following information...
You have been asked to prepare a December cash budget for
Garrick Company. The following information is available for
December for Garrick Company’s operations:
The cash balance on December 1 is $44,400.
Actual sales for October and November and expected sales for
December are as follows:
October
November
December
Sales on
account
$500,000
$700,000
$720,000
Sales on account are collected over a three-month period as
follows: 30% collected in the month of sale and 60%...
The records of Earthly Goods provided the following information for the year ended December 31, 2020....
The records of Earthly Goods provided the following information
for the year ended December 31, 2020.
At Cost
At Retail
January 1 beginning inventory
$
466,350
$
922,150
Purchases
3,184,200
6,393,700
Purchase returns
51,800
118,350
Sales
5,485,700
Sales returns
44,100
Required:
1. Prepare an estimate of the company’s year-end inventory
by the retail method. (Round all calculations to two
decimal places.)
Under the assumption the company took a year-end physical
inventory at marked selling prices that totalled $1,674,800,
prepare a...
The information below is about ACT Fast Enterprise for the year ended 31 December 2020. Debtors...
The information below is about ACT Fast Enterprise for the
year ended 31 December 2020.
Debtors (before bad debt write
off)
RM240,000
Bad debt write
off
RM5,000
Balance Allowance Doubtful Debt Account on 31 Dec
2019 RM500
(credit)
Based on experience, ACT Fast Enterprise expects that
uncollectible debt is 5% from the debtors balance.
Required:
Show the journal entries for all relevant transactions
above.
Prepare the ledger for allowance for doubtful debt showing
balance on 31 December 2020....
The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.
The following information has been provided on ABC, a Canadian
controlled private corporation for the year ended December 31,
2020.The following statement has been provided:Sales$895,000Cost of sales$450,000General and administrative expenses225,000Research and development expenditures75,000Operating income$145,000Other income35,000Net income before taxes180,000Provision for income taxes – current and future40,000Net income after taxes$140,000You have been provided some notes on the above information:The information in the following notes has already been
reflected in the above income statement.Amortization expense recorded in the financial statements
$25,000Landscaping costs re:...
For the year ended December 31, 2018, Martin Marietta Manufacturing Company has the following information: ...
For the year ended December 31, 2018, Martin Marietta
Manufacturing Company
has the following
information:
Work In Process Inventory, December
31
$ 30,000
Finished Goods Inventory, December
31
55,000
Raw Materials Inventory, December
31
28,000
Raw Materials
purchases
36,000
Factory supervisory
salaries
6,000
Operating
expenses
47,000
Factory depreciation
expense
2,000
Factory utilities
expense
4,000
Direct
labor
30,000
Indirect
labor
10,000
Sales
revenue
230,000
Sales
discounts
5,000
...
For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the...
For the year ended December 31, 2020, the job cost sheets of
DeVoe Company contained the following data:
Job Number
Explanation
Direct
Materials
Direct
Labour
Manufacturing
Overhead
Total
Costs
7640
Balance 1/1
$25,100
$24,500
$29,800
$79,400
Current year’s costs
31,000
35,300
43,300
109,600
7641
Balance 1/1
11,600
18,800
21,900
52,300
Current year’s costs
43,900
48,400
58,600
150,900
7642
Current year’s costs
48,900
56,000
66,600
171,500
Other data:
1.
Raw materials inventory totalled $15,200 on January 1. During
the year, $140,300...
For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the...
For the year ended December 31, 2020, the job cost sheets of
DeVoe Company contained the following data:
Job Number
Explanation
Direct
Materials
Direct
Labour
Manufacturing
Overhead
Total
Costs
7640
Balance 1/1
$25,300
$24,500
$29,300
$79,100
Current year’s costs
30,700
35,900
43,500
110,100
7641
Balance 1/1
11,300
18,800
21,900
52,000
Current year’s costs
43,900
48,100
58,400
150,400
7642
Current year’s costs
49,000
55,300
66,100
170,400
Other data:
1.
Raw materials inventory totalled $15,200 on January 1. During
the year, $140,800...
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