Tyler Sheen is the owner of MTE Incorporated. He provided the selected opening balances as...
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Accounting
Tyler Sheen is the owner of MTE Incorporated. He provided the selected opening balances as at June 1,
2019 and the budgeted information for June and July 2019.
| Selected Opening Balances as of June 1, 2019 | |
| Cash Accounts Receivable Inventory Noncurrent Assets Accounts Payable Stockholders Equity | $75,000 130,000 240,000 100,000 50,000 640,000 |
| Budgeted Amounts | |
| For the month of June: Total Revenue Total General and Administration Costs Total Capital Expenditures For the month of July: Total Revenue Total General and Administration Costs Total Capital Expenditures | $310,000 195,000 150,000 410,000 200,000 250,000 |
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| |
The companys monthly depreciation represents 20% of general and administration costs. Sixty percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the $150,000 capital expenditures for June, $125,000 will be paid in July. The remaining amount will be paid in the month in which they are incurred.
a) Calculate the total cash disbursement for the month of June.
b) Calculate the total cash disbursement for the month of July.
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