Chapter+12+-+2009

Chapter+12+-+2009 - EXERCISE SOLUTIONS Exercise 12.9...

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EXERCISE SOLUTIONS Exercise 12.9 Budgeted cash receipts from sales HARRY’S HARDWARE LTD Budgeted Cash Receipts from Sales April May June From cash sales in same month [1] $37 500 $45 000 $39 000 [30% x current month] From credit sales same month 52 500 63 000 54 600 [70% x current month x 60%) From preceding month’s sales [3] 29 190 26 250 31 500 [70% x 30% x preceding month] From second preceding month [4] 5 670 4 865 4 375 [70% x 5% x second preceding month] $124 860 $139 115 $129 475 [1] 30% of monthly sales are for cash. [2] 70% of monthly sales are for credit. 60% of monthly credit sales are collected in month of sale. [3] 30% of monthly credit sales are collected in the next month. [4] 5% of monthly credit sales are collected two months later.
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Exercise 12.10 Budgeted cash payments for purchases A. LEWISHAM LTD Budgeted Purchases – Sept.-Oct. 2006 Sept. Oct. Required ending inventory $171 600 [1] $188 160 [3] Cost of sales 129 600 [2] 116 400 [4] Less beginning inventory (190 500) (171 600) [5] Required purchases $110 700 $132 960 B. LEWISHAM LTD Expected Cash Payments for Purchases – Sept.-Oct. 2006 Sept. Oct. 60% - current month 66 420 [8] 79 776 [11] 30% - previous month 41 400 [7] 33 210 [10] 10% - second preceding month $12 950 [6] $13 800 [9] Cash payments $120 770 $126 786 [1] 194 000 (0.60) + 0.4 [230 000 (0.60)] [2] 216 000 (0.60) [3] 230 000 (0.60) + 0.4 [209 000 (0.60)] [4] 194 000 (0.60) [5] Ending inventory – September [6] 129 500 x 0.10 [7] 138 000 x 0.30 [8] 110 700 x 0.60 [9] 138 000 x 0.10 [10] 110 700 x 0.30 [11] 132 960 x 0.60 2
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Problem 12.2 Bank reconciliation A. Cash Receipts Journal Cash Payments Journal Date Particulars Cash at Bank Date Particulars Cash at Bank Jun 30 Progress, total $22 898 Jun 30 Progress, total $24 576 So-Lite Ltd Bank fees 32 (dishon. cheque) (327) Adj. to Chq. 842 Error 9 Electronic transfer 680 Interest revenue 54 $23 305 $24 617 B. Cash at Bank 1/6 Balance b./d $6 300 30/6 CPJ $24 617 30/6 CRJ 23 305 Balance c/d 4 988 $29 605 $29 605 30/6 Balance b/d $4 988 3
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C. COLIN’S CHARTER TOURS Bank Reconciliation Statement as at 30 June Balance as per bank statement Cr $4 033 Add: Outstanding deposit 1 200 $5 233 Less: Unpresented cheques: no. 864 $60 no. 866 73 no. 870 111 245 Balance as per Cash at Bank account Dr $4 988 D. Cash at bank $4 988 4
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Problem 12.3 Bank reconciliation A Cash journals: Before adjustments Adjustments Final Totals Receipts: $14 538.18 + 1 250 Note credited - $268 ret. $15 520.18 Payments: $14 800.62 + $9 Error adj. + $32.00 fees $14 841.62 Cash at Bank 1/5 Balance b./d $16 998.54 31/5 CPJ $14 841.62 31/5 CRJ 15 520.18 Balance c/d 17 677.10 $32 518.72 $32 518.72 1/6 Balance b/d $17 677.10 B. AZURE SERVICES LTD
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This note was uploaded on 07/29/2011 for the course BUS 444 taught by Professor Lynn during the Spring '11 term at Keuka.

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Chapter+12+-+2009 - EXERCISE SOLUTIONS Exercise 12.9...

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