"Compute the end-of-month balances for April, May, & June for the cash, accounts, receivable, and supplies."
So when I compute cash for May, will I start from the cash balance from April 31st? And the same thing for June, where I will start from where the cash balance was on May 31st? I am really confused. Thanks! :)
Yes, the ending balance of accounts for one period is the beginning balance for the next one.
To compute the end-of-month balances for cash, accounts receivable, and supplies for April, May, and June, you will follow a straightforward process.
1. Start with the initial balances for each account at the beginning of April.
2. For April's end-of-month balances, you won't need to make any adjustments since it is the start of your computation. So, the cash, accounts receivable, and supplies balances from April 30th will be the end-of-month balances for April.
3. To compute the end-of-month balances for May, you will indeed start with the cash balance from April 30th. Add any additional cash received during May and subtract any cash spent or withdrawn during May. The resulting amount will be the end-of-month cash balance for May.
4. Repeat the same process for accounts receivable and supplies. Start with the balances from April 30th and adjust for any changes during May.
5. The computed amounts from step 4 will be the end-of-month balances for May.
6. Finally, for June, you will once again start with the end-of-month balances from May (specifically May 31st). Add or subtract any transactions or changes in cash, accounts receivable, or supplies that occur during June.
7. The resulting amounts will be the end-of-month balances for June.
Remember, it is important to keep track of all cash inflows and outflows, as well as any changes in accounts receivable and supplies throughout each month to accurately compute the end-of-month balances.
By following this process, you will be able to determine the end-of-month balances for cash, accounts receivable, and supplies for April, May, and June.