argaret's Massages is a day spa providing relaxing treatment to its clients. Margaret's Massages balance sheet for June 30, 2021 is as follows: Margaret's MassagesBalance SheetJune 30, 2021 Assets Current Assets: Cash $15,270 Accounts Receivable $1,840 Prepaid Insurance $770 Total Current Assets $17,880 Property, Plant & Equipment Equipment & Fixtures $18,620 Less: Accumulated Depreciation ($3,470) $15,150 Total Assets $33,030 Liabilities Current Liabilities: Accounts Payable $1,900 Total Liabilities $1,900 Stockholders' Equity Common Stock, no par $10,420 Retained Earnings $20,710 Total Stockholders' Equity $31,130 Total Liabilities and Stockholders' Equity $33,030 The following information is also included: Sales fees 80% cash and 20% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September. Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month. Complete the following budgets for the third quarter.
argaret's Massages is a day spa providing relaxing treatment to its clients. Margaret's Massages balance sheet for June 30, 2021 is as follows: Margaret's MassagesBalance SheetJune 30, 2021 Assets Current Assets: Cash $15,270 Accounts Receivable $1,840 Prepaid Insurance $770 Total Current Assets $17,880 Property, Plant & Equipment Equipment & Fixtures $18,620 Less: Accumulated Depreciation ($3,470) $15,150 Total Assets $33,030 Liabilities Current Liabilities: Accounts Payable $1,900 Total Liabilities $1,900 Stockholders' Equity Common Stock, no par $10,420 Retained Earnings $20,710 Total Stockholders' Equity $31,130 Total Liabilities and Stockholders' Equity $33,030 The following information is also included: Sales fees 80% cash and 20% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September. Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month. Complete the following budgets for the third quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Margaret's Massages is a day spa providing relaxing treatment to its clients.
Margaret's Massages
Margaret's MassagesBalance SheetJune 30, 2021
Assets | ||
---|---|---|
Current Assets: | ||
Cash | $15,270 | |
$1,840 | ||
Prepaid Insurance | $770 | |
Total Current Assets | $17,880 | |
Property, Plant & Equipment | ||
Equipment & Fixtures | $18,620 | |
Less: |
($3,470) | $15,150 |
Total Assets | $33,030 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $1,900 | |
Total Liabilities | $1,900 | |
Common Stock, no par | $10,420 | |
$20,710 | ||
Total Stockholders' Equity | $31,130 | |
Total Liabilities and Stockholders' Equity | $33,030 |
The following information is also included:
- Sales fees 80% cash and 20% on account.
- The balance in the Accounts Receivable account is the sales on account from last quarter.
- Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September.
- Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month.
Complete the following budgets for the third quarter.

Transcribed Image Text:Cash Sales
Margaret's Massages
Sales Budget
For the Quarter Ended September 30, 2021
July
August September
Sales on Account
Total Sales
Variable Expenses:
Bonus Expense
Margaret's Massages
Selling and Administration Budget
For the Quarter Ended September 30, 2021
July
August
September
Miscellaneous Expense
Total Variable
Expenses
Fixed Expenses:
Salaries Expense
Rent Expense
Total
Depreciation Expense
Utilities Expense
Insurance Expense
Total Fixed Expenses
Total Selling &
Administrative
Expenses
Total
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education