EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $32,800. The budgeted expenses for the next three months are as follows: January February March Salaries $75,400 $91,800 $101,700 Utilities 6,200 6,900 8,200 Other operating expenses 57,300 62,500 68,800 Total $138,900 $161,200 $178,700 Other operating expenses include $4,100 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March Total cash payments

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 20E
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Schedule of Cash Payments for a Service Company

 

Schedule of Cash Payments for a Service Company
EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $32,800. The budgeted expenses for the next three
months are as follows:
January
February
March
Salaries
$75,400
$91,800
$101,700
Utilities
6,200
6,900
8,200
Other operating expenses
57,300
62,500
68,800
Total
$138,900
$161,200
$178,700
Other operating expenses include $4,100 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the
month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers.
EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
January
February
March
$4
Total cash payments
$
Transcribed Image Text:Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $32,800. The budgeted expenses for the next three months are as follows: January February March Salaries $75,400 $91,800 $101,700 Utilities 6,200 6,900 8,200 Other operating expenses 57,300 62,500 68,800 Total $138,900 $161,200 $178,700 Other operating expenses include $4,100 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January February March $4 Total cash payments $
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