Nobula Corp.is preparing their budget for the second quarter and provides the following data: Assume that accounts payable pertains only to suppliers of inventory.Based on the above data,the amount of Accounts Payable that should be shown in the budgeted balance sheet as on June 30 is ________.

Question

Nobula Corp.is preparing their budget for the second quarter and provides the following data:  Assume that accounts payable pertains only to suppliers of inventory.Based on the above data,the amount of Accounts Payable that should be shown in the budgeted balance sheet as on June 30 is ________.

Quizplus · Accepted Answer

Since accounts payable pertains only to suppliers of inventory, we need to calculate the purchases made during the quarter.

Purchases = cost of goods sold + ending inventory - beginning inventory 
Purchases = ($230,000 + $26,000) - $24,000 
Purchases = $232,000

Therefore, accounts payable will be: 
Accounts payable = Purchases x % to be paid to suppliers 
Accounts payable = $232,000 x 0.05 
Accounts payable = $11,600

However, since the question is asking for the amount to be shown in the budgeted balance sheet on June 30, we need to consider any payments made to suppliers during the quarter. The question does not provide any information on this, so we assume that no payments have been made.

Therefore, the amount of Accounts Payable that should be shown in the budgeted balance sheet as on June 30 is $10,800 ($11,600 - $800).

Hence, the correct answer is C.