Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. October November December Budgeted S&A Expenses Equipment lease expense Salary expense Cleaning supplies Insurance expense Depreciation on computer Rent Miscellaneous expenses Total operating expenses Schedule of Cash Payments for S&A Expenses Equipment lease expense Prior month's salary expense, 100% Cleaning supplies Insurance premium Depreciation on computer Rent Miscellaneous expenses Total disbursements for operating expenses $ b. Salaries payable c. Prepaid insurance 5,200 $ 5,200 $ 6,600 7,100 2,760 1,500 2,500 1,800 670 Complete this question by entering your answers in the tabs below. 2,810 1,500 5,200 7,500 3,050 1,500 2,500 2,500 1,800 1,800 670 670 $ 21,080 $21,530 $ 22,220 $ 19,480 $ 17,030 $ 17,820 Req A Req B and C Determine the amount of salaries payable and prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
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.
The budget director for Fanning Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.
Required
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Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
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Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
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Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
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