Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $99,000; May, $129,000; and June, $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June.

Answer and Explanation:

The preparation of a schedule of budgeted cash payment for the three months i.e April, may and June is presented below:

Particulars                         April           May                June  

Purchase                          $99,000    $129,000        $139,000  

Payment made in

Latest Month (70%)       $69,300    $90,300          $97,300  

Payment made in

Next Month (30%)            $29,700     $38,700         $41,700  

                                    Cash Disbursements  

Particulars                        April             May                  June  

Payment made in  

Current Month (70%)      $69,300       $90,300          $97,300  

Add:

Last Month

Purchases       (30%)       $41,000        $29,700          $38,700  

Budgeted

Cash Payments                $110,300      $120,000        $136,000

explanation:

kool beans

answer; (10%) commission;