The budget must plan for enough cash on december 31 to pay


Question - At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1 (from a summer job) $6,510

Purchase season football tickets in September 90

Additional entertainment for each month 230

Pay fall semester tuition in September 3,500

Pay rent at the beginning of each month 320

Pay for food each month 180

Pay apartment deposit on September 2 (to be returned December 15) 500

Part-time job earnings each month (net of taxes) 810

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

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Accounting Basics: The budget must plan for enough cash on december 31 to pay
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