Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weeklyfor services provided and usually pay 40 percent of their fees in the month the service is provided, In the month following service, Paulcollects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplieson credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of thesupplies Paul purchases, 85 percent is used in the month of purchase, and the remainder is used in the month following purchase.The following information is available for the months of June, July, and August, which are Paul's busiest months:• June 1 cash balance $14,800.• June 1 supplies on hand $4,000.• June 1 accounts receivable $8,300.• June 1 accounts payable $3,900.· Estimated sales for June, July, and August are $24,900, $37,400, and $39,900, respectively.• Sales during May were $23,300, and sales during April were $16,700.· Estimated purchases for June, July, and August are $9,200, $17,600, and $12,600, respectively.• Purchases in May were $5,100.Required:1. Compute budgeted cash receipts and budgeted cash payments for each month.2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts:Complete this question by entering your answers in the tabs below.Required 1Required 2Compute budgeted cash receipts and bådgeted cash payments for each month.JuneJulyAugustBudgeted Cash ReceiptsBudoeted Cash Pavments Required 1Required 2Compute the balances necessary to prepare a budgeted balance sheet for AuguBalances for August 31 Budgeted Balance SheetCashJune 1 BalanceAdd: Total Cash ReceiptsLess: Total Cash PaymentsAugust 31 BalanceSupplies Inventory15% of August PurchasesAccounts Receivable60% of August Sales10% of July SalesBalance at August 31Accounts Payable50% of August Purchases< Required 1Required 2

Budgeted Cash Receipts . Jun Jul Aug Op Bal. 14800 24560 38570 April sales realised…

Answered: it, and pays 50 p s Paul purchases

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 71IIP

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Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 80 percent of their fees in the month the service is provided. In the month following service, Paul collects 15 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul’s busiest months: June 1 cash balance $16,900. June 1 supplies on hand $4,700. June 1 accounts receivable $9,700. June 1 accounts payable $4,600. Estimated sales for June, July, and August are $29,100, $43,700, and $46,900,…
Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul’s busiest months: June 1 cash balance $14,500. June 1 supplies on hand $3,900. June 1 accounts receivable $8,100. June 1 accounts payable $3,800. Estimated sales for June, July, and August are $24,300, $36,500, and $38,900,…
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 40 percent of their fees in the month the service is provided. In the month following service, Paul collects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 80 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul's busiest months: June 1 cash balance $16,300. June 1 supplies on hand $4,500. ⚫ June 1 accounts receivable $17,650. ⚫ June 1 accounts payable $2,800. " • • Estimated sales for June, July, and August are $27,900, $41,900, and $44,900,…
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 40 percent of their fees in the month the service is provided. In the month following service, Paul collects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul's busiest months: June 1 cash balance $16,700. June 1 supplies on hand $4,500. June 1 accounts receivable $9,400. • June 1 accounts payable $4,400. • Estimated sales for June, July, and August are $28,200, $42,300, and $45,000,…
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Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has three men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 27 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $48 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 30 rental houses every two weeks during the months of May through September. LStar has offered to pay $30 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a two-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $360 used. Fuel to run the additional mower will be about $0.40 per yard. 1. If Jason…
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Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has two men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 28 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $38 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 25 rental houses every two weeks during the months of May through September. LStar has offered to pay $25 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a one-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $345 used. Fuel to run the additional mower will be about $0.50 per yard. . If Jason…
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