On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 Cash Sales Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: - Creditors are paid one (1) month after purchases. - Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April.
On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 Cash Sales Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: - Creditors are paid one (1) month after purchases. - Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April.
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 1EB: Provide journal entries to record each of the following transactions. For each, identify whether the...
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