a. During October, Shandra Company had $97,500 of cash receipts and $101,250 of

Question

a.
During October, Shandra Company had $97,500 of cash receipts and $101,250 of cash disbursements. The October 31 Cash balance was $16,800. Determine how much cash the company had at the close of business on September 30.
b.
On September 30, Mordish Co. had a $97,500 balance in Accounts Receivable. During October, the company collected $88,950 from its credit customers. The October 31 balance in Accounts Receivable was $100,500. Determine the amount of sales on account that occurred in October.
c.
Nasser Co. had $147,000 of accounts payable on September 30 and $136,500 on October 31. Total purchases on account during October were $270,000. Determine how much cash was paid on accounts payable during October.


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Explanation / Answer

a. Clsoing Cash Bal = Opening Cash Bal + Cash Rxpts - Cash DIsbursemnet ie Closing Cash bal = 16800+101250-97500 = $20,550 b. Sales = Clsoing Bal + Amt rxd from Creditor - Opening Acct Raxble ie Sales = 100500+88950-97500 = $91,950 c. Cash paid = Opening Bal + Purch - CLosing Bal ie Cahs paid = 147000+270000-136500 = $280,500

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