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 $29,400. The budgeted expenses for the next three months are as follows: January February March Salaries $67,600 $82,300 $91,100 Utilities 6,200 5,600 7,400 Other operating expenses 56,800 52,100 62,500 $125,300 $145,300 $161,000 Total Other operating expenses include $3,700 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, 80% 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 January February March Total cash payments
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 $29,400. The budgeted expenses for the next three months are as follows: January February March Salaries $67,600 $82,300 $91,100 Utilities 6,200 5,600 7,400 Other operating expenses 56,800 52,100 62,500 $125,300 $145,300 $161,000 Total Other operating expenses include $3,700 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, 80% 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 January February March Total cash payments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $29,400. The budgeted expenses for the next three months are as follows:
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 $29,400. The budgeted expenses for the next three months are as follows:
January February
March
Salaries
$67,600
$82,300
$91,100
Utilities
6,200
5,600
7,400
Other operating expenses
56,800
52,100
62,500
$125,300 $145,300 $161,000
Total
Other operating expenses include $3,700 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, 80% 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
January February
March
Total cash payments
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