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 $30,700. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses January February March $70,600 5,800 54,400 $86,000 $95,200 6,400 59,300 7,700 65,300 Total $130,800 $151,700 $168,200 Other operating expenses include $3,800 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, 75% 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 Payments of prior month's expense 30,700 V 12,425 X 13,650 X Payments of current month's expense 118,375 X 138,050 X 153,050 X Total cash payments 149,075 X 150,475 X 166,700 X
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 $30,700. The budgeted expenses for the next three months are as follows: Salaries Utilities Other operating expenses January February March $70,600 5,800 54,400 $86,000 $95,200 6,400 59,300 7,700 65,300 Total $130,800 $151,700 $168,200 Other operating expenses include $3,800 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, 75% 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 Payments of prior month's expense 30,700 V 12,425 X 13,650 X Payments of current month's expense 118,375 X 138,050 X 153,050 X Total cash payments 149,075 X 150,475 X 166,700 X
Chapter1: Financial Statements And Business Decisions
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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
$30,700. The budgeted expenses for the next three months are as follows:
Salaries
Utilities
Other operating expenses
January
February
March
$70,600
$86,000 $95,200
5,800
54,400
6,400
59,300
7,700
65,300
Total
$130,800 $151,700 $168,200
Other operating expenses include $3,800 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, 75% 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
Payments of prior month's expense
30,700
12,425 X $ 13,650 X
Payments of current month's expense
118,375 X
138,050 X
153,050 X
Total cash payments
149,075 X
150,475 X
166,700 X
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