Accounting ?


1.      Kayak Co. budgeted the subjoined specie produce (still specie produce from mortgages accepted) and specie disbursements (still specie disbursements for mortgage pre-eminent and concern acquittals) for the original three months of direct year.

   

 

 

Cash

Receipts

Cash

Disbursements

  January

$

518,000      

$

485,000        

  February

 

412,500      

 

358,000        

  March

 

462,000      

 

532,000        


    

 

According to a praise conformity succeeding a while the assembly’s bank, Kayak promises to own a minimum specie weigh of $30,000 at each month-end. In come-back, the bank has agreed that the assembly can borrow up to $150,000 at an annual concern trounce of 12%, compensated on the decisive day of each month. The concern is computed domiciled on the prelude weigh of the mortgage for the month. The assembly repays pre-eminent on the mortgage succeeding a while available specie on the decisive day of each month. The assembly has a specie weigh of $30,000 and a mortgage weigh of $60,000 at January 1.

  
Make-ready monthly specie budgets for each of the original three months of direct year. (Amounts to be deducted should be involved by a minus token.)

 

 

 

 

 

 

 

 

 

 

 

 

 

2.      Walker Assembly make-readys monthly budgets. The general budget plans for a September completion register of 38,000 parts. Assembly management is to end each month succeeding a while stock register correspondent to a clear percent of budgeted sales for the subjoined month. Budgeted sales and stock forfeitures for the direct three months ensue.

  

 

Sales (Units)

Purchases (Units)

  July

160,000

194,000

  August

330,000

324,000

  September

300,000

278,000

   

 

 

 

 

 

 

3.      3.  Use the subjoined instruction to make-ready the July specie budget for Acco Co. It should pretence expected specie produce and specie disbursements for the month and the specie weigh expected on July 31.

 

  

a.

Beginning specie weigh on July 1: $64,000.

b.

Cash produce from sales: 35% is firm in the month of sale, 50% in the direct month, and 15% in the cooperebuke month succeeding sale (uncollectible propositions are negligible and can be ignored). Sales amounts are: May (actual), $1,750,000; June (actual), $1,480,000; and July (budgeted), $1,540,000.

c.

Payments on stock forfeitures: 90% in the month of forfeiture and 10% in the month subjoined forfeiture. Purchases amounts are: June (actual), $570,000; and July (budgeted), $450,000.

d.

Budgeted specie disbursements for salaries in July: $220,000.

e.

Budgeted backbiting expenditure for July: $15,000.

f.

Other specie expenditures budgeted for July: $110,000.

g.

Accrued allowance taxes due in July: $90,000.

h.

Bank mortgage concern due in July: $8,500

 

1.            Calculation of specie produce from sales firm in  May, June, July, July 31 Accounts Rec.

2.            Calculation of specie acquittals for stock compensated in June, July, July 31 Accounts Rec

 

4.     4.  Following instruction relates to Acco Co.

 

  

a.

Beginning specie weigh on July 1: $40,000.

b.

Cash produce from sales: 30% is firm in the month of sale, 50% in the direct month, and 20% in the cooperebuke month succeeding sale (uncollectible propositions are negligible and can be ignored). Sales amounts are: May (actual), $1,376,000; June (actual), $960,000; and July (budgeted), $1,120,000.

c.

Payments on stock forfeitures: 60% in the month of forfeiture and 40% in the month subjoined forfeiture. Purchases amounts are: June (actual), $344,000; and July (budgeted), $600,000.

d.

Budgeted specie disbursements for salaries in July: $168,800.

e.

Budgeted backbiting expenditure for July: $9,600.

f.

Other specie expenditures budgeted for July: $120,000.

g.

Accrued allowance taxes due in July: $80,000 (kindred to June).

h.

Bank mortgage concern compensated July 31: $5,280.

  

Additional Information:

a.

Cost of commodities sold is 44% of sales.

b.

Inventory at the end of June is $64,000 and at the end of July is $171,200.

c.

Salaries payable on June 30 are $40,000 and are expected to be $32,000 on July 31.

d.

The arrangement proposition weigh is $1,280,000 on July 31. On June 30, the accumulated backbiting on arrangement is $224,000.

e.

The $5,280 specie acquittal of concern represents the 1% monthly expenditure on a bank mortgage of $528,000.

f.

Income taxes payable on July 31 are $99,456, and the allowance tax trounce convenient to the assembly is 30%.

g.

The merely other weigh fencing propositions are: Common Stock, succeeding a while a weigh of $464,000 on June 30; and Retained Earnings, succeeding a while a weigh of $857,600 on June 30.

  

Prepare a budgeted allowance proposition for the month of July and a budgeted weigh fencing for July 31.

 

 

 

 

 

 

 

5.     5.  Tempo Company's agricultural budget for the original locality of record year 2013 reveals the subjoined.

  

  

 

 

  

 

 

 

  

 

  Sales (12,000 parts)

 

 

 

 

 

$

2,424,000

 

  Cost of commodities sold

 

 

 

 

 

 

 

 

       Direct materials

 

$

276,600

 

 

 

 

 

       Direct labor

 

 

515,280

 

 

 

 

 

       Production supplies

 

 

318,360

 

 

 

 

 

       Plant overseer salary

 

 

76,600

 

 

 

1,186,840

 

  

 



 

 



 

  Gross profit

 

 

 

 

 

 

1,237,160

 

  Selling expenditures

 

 

 

 

 

 

 

 

       Sales commissions

 

 

105,600

 

 

 

 

 

       Packaging

 

 

184,080

 

 

 

 

 

       Advertising

 

 

100,000

 

 

 

389,680

 

  

 



 

 

 

 

 

  Administrative expenditures

 

 

 

 

 

 

 

 

       Administrative salaries

 

 

126,600

 

 

 

 

 

       Depreciation—office arrange.

 

 

96,600

 

 

 

 

 

       Insurance

 

 

66,600

 

 

 

 

 

       Office rent

 

 

76,600

 

 

 

366,400

 

  

 



 

 



 

  Income from operations

 

 

 

 

 

$

481,080

 

  

 

 

 

 

 





 


  

Prepare ductile budgets that pretence changeable consumes per part, agricultural consumes, and three unanalogous ductile budgets for sales volumes of 10,000, 12,000, and 14,000 parts. (Round consume per part to 2 decimal places.)

 

 

 

 

 

 6.

 

6.      Solitaire Company’s agricultural budget deed announce for June ensues. The $615,000 budgeted expenditures involve $578,100 changeable expenditures and $36,900 agricultural expenditures. Developed expenditures involve $48,900 agricultural expenditures.

 

  

 

Fixed Budget

Actual Results

Variances

  Sales (in parts)

 

8,200

 

 

10,600

 

 

 

 

  





 





 

 

 

 

  Sales (in dollars)

$

820,000

 

$

1,060,000

 

$

240,000

 F

  Total expenditures

 

615,000

 

 

738,000

 

 

123,000

 U

  



 



 



 

  Income from operations

$

205,000

 

$

322,000

 

$

117,000

 F

  





 





 





 

 

Prepare a ductile budget deed announce pretenceing any variances betwixt budgeted and developed results. List agricultural and changeable expenditures partially. (Do not entire moderate calculations.)

 

 7.

7.      Bay City Company’s agricultural budget deed announce for July ensues. The $587,000 budgeted expenditures involve $400,000 changeable expenditures and $187,000 agricultural expenditures. Developed expenditures involve $177,000 agricultural expenditures.

 

  

 

Fixed Budget

Actual Results

Variances

  Sales (in parts)

 

8,000

 

 

6,900

 

 

 

 

  





 





 

 

 

 

  Sales (in dollars)

$

640,000

 

$

607,200

 

$

32,800

 U

  Total expenditures

 

587,000

 

 

551,000

 

 

36,000

 F

  



 



 



 

  Income from operations

$

53,000

 

$

56,200

 

$

3,200

 U

  





 





 





 

  

Prepare a ductile budget deed announce that pretences any variances betwixt budgeted results and developed results. List agricultural and changeable expenditures partially. (Do not entire moderate calculations.)