Bonita Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $72,000; December 2021, $81,000; January 2022, $90,000; February 2022, $108,000; and March 2022, $126,000. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $12,600; January 2022, $10,8 February 2022, $13,500; and March 2022, $16,200. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. January BONITA LANDSCAPING INC. Schedule of Expected Collections From Clients February March Quarter
Bonita Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $72,000; December 2021, $81,000; January 2022, $90,000; February 2022, $108,000; and March 2022, $126,000. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $12,600; January 2022, $10,8 February 2022, $13,500; and March 2022, $16,200. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. January BONITA LANDSCAPING INC. Schedule of Expected Collections From Clients February March Quarter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Bonita Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been
collected.
Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service.
Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $72,000; December 2021, $81,000; January 2022, $90,000; February 2022, $108,000; and March 2022, $126,000.
Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $12,600; January 2022, $10,800;
February 2022, $13,500; and March 2022, $16,200.
(a)
Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total:
(1) Expected collections from clients.
November
December
January
February
March
Total collections
$
$
January
BONITA LANDSCAPING INC.
Schedule of Expected Collections From Clients
$
$
February
$
March
$
$
Quarter
Transcribed Image Text:(2) Expected payments for landscaping supplies.
December
January
February
March
Total payments
(b)
$
$
January
Determine the following balances at March 31, 2022:
(1) Accounts receivable $
(2) Accounts payable
BONITA LANDSCAPING INC.
Schedule of Expected Payments for Landscaping Supplies
$
$
$
February
$
$
March
$
$
Quarter
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