Survey of Accounting Class 11 Packet Practice Problem #4 (Weeks #2 and 5 Materia

Question

Survey of Accounting Class 11 Packet Practice Problem #4 (Weeks #2 and 5 Material 1. Holiday Travel Company is a travel agency that specializes in family vacations. Holiday earned services revenue of $40,000 in May. All services are provided on account. The company expects a 20 percent increase in revenue for June. The balance in the Accounts Receivable account on May 31 was $5,000 and is budgeted to be $11,000 as of June 30. How much cash can Holiday expect to receive from customers in June? 2. The purchasing department manager for Holiday anticipates that $2,000 of Supplies Expense will be reported in June and $2,500 in July. Holiday's policy is to maintain an ending supplies balance equal to 10 percent of the following month's supplies expense. At May 31, Holiday had $200 worth of supplies on hand. How many dollars' worth of supplies should Holiday plan to purchase in June? 3. All purchases of supplies are made on account. Holiday's supplier requires that 70% of purchases be paid in the month of purchase with the remaining 30% paid in the subsequent month. At May 31, Holiday owed its suppliers $450. How much cash will Holiday be required to pay its suppliers in June? 4. At May 31, Holiday's cash balance is $10,000. Selling and administrative expenses (in addition to supplies) are budgeted to equal $45,000 for June and are payable in cash by June 30 Holiday has a line of credit that enables the agency to borrow funds on demand; however, they may only be borrowed on the last day of the month. In other words, Holiday must borrow funds needed during June on May 31. Holiday desires to maintain a $10,000 cash balance in its account. Considering all of the facts presented above, how much should Holiday plan to borrow on May 312

Explanation / Answer

1) Cash collection in june = Beginning account receivable+Earned service revenue-Ending account receivable

= 5000+(40000*120%)-11000

Cash collection in june = 42000

Note : Please post each question individually beacuse these are independent question as per chegg policy

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.