Tyler Sheen is the owner of Stopby Inn. He provided the selected opening balances as at June 1, 2020 and the budgeted information for June and July 2020.
Selected Opening Balances as of June 1, 2020
Cash $108,600
Accounts Receivable 71,000
Inventory 210,000
Long-term Assets 508,000
Accounts Payable 51,600
Shareholder's Equity 734,000
Budgeted Amounts
For the month of June:
Total Revenue $317,000
Total General and Administration Costs 201,000
Total Capital Expenditures 169,000
For the month of July:
Total Revenue 401,500
Total General and Administration Costs 249,000
Total Capital Expenditures 201,000
Do not enter dollar signs or commas in the input boxes.
Round your answer to the nearest dollar
The company’s monthly depreciation represents 20% of general and administration costs. 80% percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the $169,000 capital expenditures for June, $114,000 will be paid in July. The remaining amount will be paid in the month in which they are incurred.
a) Calculate the total cash disbursement for the month of June.
General Administration costs from May $Answer
51600
General Administration costs from June $Answer
Capital Expenditure $Answer
5500
Total cash disbursement for June $Answer
b) Calculate the total cash disbursement for the month of July.
General Administration costs From June $Answer
General Administration costs From July $Answer
Capital Expenditure from June $Answer
11400
Capital Expenditure from July $Answer
201000
Total cash disbursement for July $Answer
