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 $27,600. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses Total January February March $63,500 $77,300 $85,600 5,800 6,900 52,600 58,000 5,200 48,300 $117,000 $135,700 $150,500 Other operating expenses include $3,400 of monthly depreciation expense and $800 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. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 Line Item Description January February March Total cash payments Depreciation expense Other operating expenses Payments of prior month's expense Salaries Utilities
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 $27,600. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses Total January February March $63,500 $77,300 $85,600 5,800 6,900 52,600 58,000 5,200 48,300 $117,000 $135,700 $150,500 Other operating expenses include $3,400 of monthly depreciation expense and $800 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. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31 Line Item Description January February March Total cash payments Depreciation expense Other operating expenses Payments of prior month's expense Salaries Utilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $27,600. The
budgeted expenses for the next three months are as follows:
Salaries
Utilities
Other operating expenses
Total
January February
March
$63,500 $77,300 $85,600
5,800 6,900
52,600 58,000
5,200
48,300
$117,000 $135,700 $150,500
Other operating expenses include $3,400 of monthly depreciation expense and $800 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.
EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
Line Item Description January February March
Total cash payments
Transcribed Image Text:Depreciation expense
Other operating expenses
Payments of prior month's expense
Salaries
Utilities
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