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
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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