2
nd
.In class assignment M.ACCT section 51
You are provided with the following Sales Budget, Purchases Budget and selling and administrative expenses budget for
Tech. to go Co. for the second quarter of the year 2020.
(I)Sles Budget
April. May. June. Total
Cash sales 35,000 20,750 23,000 76,750
Credit sales 2,000 14,000 17,000 33,000
Total sales 37,000 34,750 40,000 111,750
(II)Purchase Budget
April. May. June. Total
Cash Purchases 13,000 17,000 24,000 54,000
Credit Purchases 3,000 6,000 9,000 18,000
Total Purchases 16,000 23,000 33,000 72,000
(III)Sales& Administrative Expenses Budget
April. May. June. Total
Salaries 7,000 8,000 7,600 22,600
Sales
Commissions
3,800 2,600 4,400 10,800
Rent 400 400 400 1,200
Maintenance 1,200 1,750 1,500 4,450
Insurance 150 150 150 450
Utilities 300 300 300 900
Depreciation 200 200 200 600
Total 13,050 13,400 14,550 40,750
Requirements: Assuming Tech. to go is planning to purchase new
equipment for $9,000 cash during April 2020. All cash expenses
are paid when incurred except insurance expenses which are
expiration of prepaid. Prepare the following budgets for the
second quarter of the year 2020:
1-Collections from customers budget Assume all credit sales will
be collected during the following month of sale.
(Accounts Receivable at March.31, 2020 equals $9,000)
2- Payments for purchases budget Assume all credit purchases
will be paid during the following month of purchases (Accounts
Payable at March 31, 2020 equals $4,000)
3- Cash budget assume Cash balance at March.31 2020 equals
$12,000.
4-Determine the amount of Accounts Receivable, Accounts
Payable and cash balance at June 30,2020.
Requirement 1 Cash receipt from customer’s Budget
April. May. June. Total
April Collections:
From April Sales
From March Sales
Total April collection
May Collections:
From May Sales
From April Sales
Total May collections
June Collections:
From June Sales
From May Sales
Total June collections
Total cash receipt
Requirement 2 purchase payment Budget
April. May. June. Total
April purch. Payments:
For April Purch.
For March Purch.
Total April. Purc. Pay.
May purch. Payments:
For May Purch.
For April Purch.
Total May Purch. Pay.
June purch. Payments:
For June Purh.
For May Purch.
Total June Purch. Pay.
Total Purchase Payments
Requirement 3 Cash Budget
April. May. June. Total
Beginning cash balance
Cash receipts
Cash available
Cash payments:
For Purchases
For S & Adm. Exp.
For Additional Assets
Total cash payments
Ending cash balance
Requirement 4
a- Accounts receivable at June 30,2020 = ………………………….
b- Accounts Payable at June 30, 2020 = …………………………….
c- Cash Balance at June 30,2020 = ………………………