Question

Springfield Company's master budget includes estimated costs and expenses of $400,000 for its third quarter of...

Springfield Company's master budget includes estimated costs and expenses of $400,000 for its third quarter of operations. Of this amount, $377,000 is expected to be financed with current payables. Depreciation expense for the quarter is budgeted at $20,000. Springfield's prepayments balance at the end of the third quarter is expected to be twice that of its prepayments balance at the beginning of the quarter. The company estimates it will prepay expenses totaling $6,800 in the third quarter. What is Springfield's budgeted prepayments balance at the end of the third quarter?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer

Springfield's budgeted prepayments balance at the end of the third quarter:

Payment to be expired during the quarter= total cost - financed with current payables-Depreciation expense for the quarter

Payment to be expired during the quarter =$400000-$377000-$20000

=$3000

Now, Ending prepayment = Beginning prepayment+Cash payment- Expired prepayment

Ending prepayment is twice of its Beginning prepayment

Then, 2x = x +$6800-$3000

x =$3800

Hence, Beginning prepayment is $3800

then, Ending prepayment =$3800*2

=$7600

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Required: Prepare a master budget for San Marcos Collectibles for the third quarter of 2016. The...
Required: Prepare a master budget for San Marcos Collectibles for the third quarter of 2016. The following component budgets must be included: Sales Budget Cost of Goods Sold, Inventory and Purchases Budget Operating Expense Budget Budgeted Income Statement Schedule of Expected Cash Collections Schedule of Expected Cash Disbursements - Merchandise Purchases Schedule of Expected Cash Disbursements - Operating Expenses Combined Cash Budget Budgeted Balance Sheet San Marcos Collectibles is a merchandising business located downtown in San Marcos, Texas. The owners...
Potter Corporation sells office supplies to government agencies. At the beginning of the current quarter, the...
Potter Corporation sells office supplies to government agencies. At the beginning of the current quarter, the company reports the following selected account balances:   Current quarter account balances:   Cash 10,000   Accounts Receivables 200,000   Current Payable 85,000   Potter's management has made the following budget estimates regarding operations for the current quarter:   Sales (estimated) 500,000   Total cost and expenses (estimated) 400,000 (see breakdown below) Debt service payment (estimated) 145,000   Tax liability payment (estimated) 45,000   Of Potter's total costs and expenses, $30,000 is quarterly...
Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and...
Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow: July August September Budgeted sales $ 62,500 $ 78,500 $ 49,500 Budgeted cash payments for Direct materials 16,460 13,740 14,060 Direct labor 4,340 3,660 3,740 Factory overhead 20,500 17,100 17,500 Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes...
Okay Company is preparing to build its master budget. The budget will detail each quarter’s activity...
Okay Company is preparing to build its master budget. The budget will detail each quarter’s activity and the activity for the year in total. The master budget will be based on the following information: a. This will be the first year of operation for Okay Company. b. Budgeted unit sales by quarter for 2019 are projected as follows: First quarter 6,500, Second quarter 6,000, Third quarter 6,100 & Fourth quarter 6,250. First and second quarter 2020 budgeted sales units is...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 85,000 Accounts receivable 141,000 Inventory 83,250 Plant and equipment, net of depreciation 226,000 Total assets $ 535,250 Liabilities and Stockholders’ Equity Accounts payable $ 87,000 Common stock 350,000 Retained earnings 98,250 Total liabilities and stockholders’ equity $ 535,250 Exercise 8-12...
Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter...
Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Hamby Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders’ Equity Accounts payable $ 91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders’ equity $ 529,100 The company...
Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and...
Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow: July August September Budgeted sales $ 60,000 $ 76,000 $ 52,000 Budgeted cash payments for Direct materials 16,960 14,240 14,560 Direct labor 4,840 4,160 4,240 Factory overhead 21,000 17,600 18,000 Sales are 30% cash and 70% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes...
Brothers Corporation is a merchandising company that is preparing a master budget for the third quarter...
Brothers Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: brothers Corporation Balance Sheet June 30 Assets Cash $ 81,000 Accounts receivable 132,000 Inventory 56,250 Plant and equipment, net of depreciation 214,000 Total assets $ 483,250 Liabilities and Stockholders’ Equity Accounts payable $ 75,000 Common stock 346,000 Retained earnings 62,250 Total liabilities and stockholders’ equity $ 483,250 The company...
Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter...
Hamby Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Hamby Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders’ Equity Accounts payable $ 91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders’ equity $ 529,100 The company...
Cousins Corporation is a merchandising company that is preparing a master budget for the third quarter...
Cousins Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Cousins Corporation Balance Sheet June 30 Assets Cash $ 81,000 Accounts receivable 132,000 Inventory 56,250 Plant and equipment, net of depreciation 214,000 Total assets $ 483,250 Liabilities and Stockholders’ Equity Accounts payable $ 75,000 Common stock 346,000 Retained earnings 62,250 Total liabilities and stockholders’ equity $ 483,250 The company...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT