User Account

All Pages

Determine the accounts receivable and accounts payable

Assignment Help Accounting Basics
Reference no: EM131732860

Problem - Green Landscaping Inc. is preparing its budget for the first quarter of 2017. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected.

Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service.

Actual service revenue for 2016 and expected service revenues for 2017 are November 2016, $94,290; December 2016, $83,720; January 2017, $104,810; February 2017, $122,860; March 2017, $133,740.

Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2016 and expected purchases for 2017 are December 2016, $16,190; January 2017, $13,080; February 2017, $17,510; March 2017, $21,410.

(a) Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total:

(1) Expected collections from clients.

(2) Expected payments for landscaping supplies.

(b) Determine the following balances at March 31, 2017:

  • Accounts receivable
  • Accounts payable

Reference no: EM131732860

Questions Cloud

Write about walmart organization : identify ways through which feedforward, concurrent, and feedback controls can be used to assure the high quality of a final outcome. How do these controls lead
What challenges and opportunities are still relevant : Select and describe one of the key factors that influenced the evolution of the U.S. health care delivery system to what it is today.
Describe the bankruptcy and corporate ethics : Bankruptcy and Corporate Ethics. As mentioned in the text, Continental Airlines filed for bankruptcy, at least in part, as a means of reducing labor costs.
What is the value of $50 received into perpetuity : What is the value of $50 received into perpetuity? The Long-term Government Bond is pegged at 4.5%.
Determine the accounts receivable and accounts payable : Green Landscaping Inc. is preparing its budget for the first quarter of 2017. Determine the Accounts receivable and Accounts payable
What component of the policy area could be improved : What component of the policy area you selected could be improved to provide better care or patient outcomes, and how?
Capital structure when calculating firm wacc : Specifically, what financing sources are excluded from the firm's capital structure when calculating firm WACC?
Provide constructive feedback to one other classmates post : Provide constructive feedback to at least one other classmate's post. Remember to include your marketing costs from the Marketing Plan you completed.
What are the economic and social consequences of prohibiting : What are the economic and social consequences of prohibiting the replacement of economic strikers?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Contra asset account for accounts receivable

At the end of the current year, A claim against the customer created by selling merchandise or services on credit.Accounts Receivable has a balance of $3,460,000; The contra asset account for accounts receivable.

  Estimate of future salary levels

At December 31, 2008, Mongo, Inc. reported in its balance sheet a net loss of $3 million related to its pension plan. The actuary for Mongo at the end of 2009 increased her estimate of future salary levels. Mongo's entry to record the effect of th..

  Using the following information regarding actual sales for

using the following information regarding actual sales for sams ski supplies calculate the regressionnbsp line sales

  Prepare the current assets section of the balance sheet

Prepare the current assets section of the balance sheet, listing the accounts in proper sequence.

  Does smart mart have a collection problem

Smart Mart, a retail store, has a receivables turnover ratio of 4.5 times. The industry average is 12.5 times. Does Smart Mart have a collection problem with its receivables?

  Prepare the general fund journal entry for each transaction

Roseville, a small town in Indiana, had the following transactions for fiscal year ended June 30, 2015. Prepare General Fund journal entry for each transaction

  An oil drilling company must choose between two mutually

an oil drilling company must choose between two mutually exclusive extraction projects and each costs 11 million. under

  A company purchases machinery costing 50000 in october of

a company purchases machinery costing 50000 in october of 2006. five years later they discover that a better more

  Prepare the companys cash budget for february in good form

payment inc. is preparing its cash budget for february. the budgeted beginning cash balance is 27000. budgeted cash

  Problem associated to the taxable income

Blue Corporation, a cash basis taxpayer, has taxable income of $700,000 for the current year. Blue elected $80,000 of § 179 expense. It also had a related party loss of $30,000 and a realized (not recognized) gain from an involuntary conversion of..

  Cash provided by operations cover the investing activities

the cash provided by operations cover the investing activities?

  Geballe industries is a division of a major corporation

geballe industries is a division of a major corporation. last year the division had total sales of 21420000 income

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd