Answer:
Computation of the following amounts:
a. Total cash paid during the month:
= $101,000
b. Cash collections from credit customers during the month:
= $49,000
c. Cash paid on a note payable during the month:
= $20,000
Explanation:
A) Data and Calculations:
Account 30-Nov 31-Dec Additional during December
1. Cash $10,000 $5,000 Cash receipts, $96,000
2. Accounts Receivable 27,000 25,000 Sales on account, $47,000
3. Notes Payable 11,000 19,000 New borrowing, $28,000
B) T-accounts:
1. Cash Account
Description Debit Credit
Balance $10,000
Cash receipts 96,000
Cash payments 101,000
Balance $5,000
2. Accounts Receivable
Description Debit Credit
Balance 27,000
Sales on account 47,000
Cash receipts 49,000
Balance 25,000
3. Notes Payable
Description Debit Credit
Balance 11,000
New borrowing 28,000
Cash payment 20,000
Balance 19,000
