Minor Landscaping Company 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 provided, 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, $120,000; December 2021, $110,000; January 2022, $140,000; February 2022, $160,000; March 2022, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $20,000; February 2022, $22,000; March 2022, $27,000.
Minor Landscaping Company 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 provided, 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, $120,000; December 2021, $110,000; January 2022, $140,000; February 2022, $160,000; March 2022, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $20,000; February 2022, $22,000; March 2022, $27,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Please do not give image format
Transcribed Image Text:Prepare a schedule of expected payments for landscaping supplies for each month in the first quarter of 2022 and for the quarter
in total:
December $
January
February
March
Total
payments
January
Accounts Receivable $
MINOR LANDSCAPING COMPANY
Schedule of Expected Payments for Landscaping Supplies
For the Quarter Ending March 31, 2022
February
Accounts Payable
<A
Determine the account receivable balances at March 31, 2022:
$
Determine the account payable balances at March 31, 2022:
$
$
March
$
$
Qua
Transcribed Image Text:Minor Landscaping Company 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 provided, 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, $120,000; December 2021, $110,000;
January 2022, $140,000; February 2022, $160,000; March 2022, $170,000.
Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual
purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $20,000; February 2022,
$22,000; March 2022, $27,000.
Prepare a schedule of expected collections from clients for each month in the first quarter of 2022 and for the quarter in total:
November $
December
January
February
March
Total
collections
$
January
12,000
33,000
84,000
129,000
MINOR LANDSCAPING COMPANY
Schedule of Expected Collections From Clients
For the Quarter Ending March 31, 2022
February
$
$
LA
11,000
84,000
84,000
149,000
$
$
LA
March
14,000
48,000
102,000
164,000
$
$
Qua
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