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1)In 2022, Swifty Corporation had cash receipts of $42560 and cash disbursements of $24320
1)In 2022, Swifty Corporation had cash receipts of $42560 and cash disbursements of $24320. Swifty's cash balance at December 31 2022 was $59250. What was Swifty's January 1, 2022 cash balance? $83600 $77520 $53200 • $41040 .
2)On September 12, Ryan Company sold merchandise in the amount of $6,200 to Johnson Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,200. Ryan uses the periodic inventory system and the net method of accounting for sales. On September 14, Johnson returns some of the merchandise. The selling price of the merchandise is $540 and the cost of the merchandise returned is $370. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is: Multiple Choice 6,200 Cash Accounts receivable 6,200
5,547) Cash Accounts receivable 5,547 Cash Sales discounts Accounts receivable 5,547 113 5,660 6,076 Cash Accounts receivable 6,076
Cash Sales discounts Accounts receivable 6,076 1241 6,200
Expert Solution
1)A cash budget before financing includes two major sections:
(a)Cash available-Cash available section includes sources of cash other than through financing that will be available to the organisation.
Sources of cash include cash on hand at the beginning of the budget period and cash receipts during the budget period(The cash receipts budget provides details regarding anticipated collections of cash(other than financing.Cash receipts come from cash sales,collection of accounts and notes receivable and non-routine transactions.
(b)Cash Disbursements-The cash disbursements section provides expected payments during the period-payments for purchases of raw materials,supplies,equipment,wages and salaries,operating expenses and taxes.
The difference between cash available and cash disbursements is the ending cash balance.
Given,Cash receipts = $42,560
Cash disbursements = $24,320
Ending cash balance(Dec 31,2022) = $59,280
Beginning cash balance(Jan 1,2022) = Ending cash balance + Cash disbursements - Cash receipts
= $[59,280 + 24,320 - 42,560]
= $41,040
please see the attached file for the complet solution.
2)
Sales = $6,200
Sales return = $540
Final amount due = Sales - Sales return
= 6,200-540
= $5,660
Credit terms = 2/10, n/30
2% discount will be allowed on final amount due.
Sales discount = 5,660 x 2%
= $113
Cash received = Final amount due- Sales discount
= 5,660-113
= $5,547
According to net method following journal entry will be made on September 18:
| General Journal | Debit | Credit |
| Cash | 5,547 | |
| Accounts receivable | 5,447 |
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