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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 $27,900. The budgeted expenses for the next three months are as follows: January February March $64,200 $78,100 $86,500 5,300 5,900 7,000 48,800 53,200 58,600 $118,300 $137,200 $152,100 Other operating expenses include $3,500 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previa 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 Salaries Utilities Other operating expenses Total

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 $27,900. The budgeted expenses for the next three months are as follows: January February March $64,200 $78,100 $86,500 5,300 5,900 7,000 48,800 53,200 58,600 $118,300 $137,200 $152,100 Other operating expenses include $3,500 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previa 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 Salaries Utilities Other operating expenses Total

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $27,900. The budgeted expenses for the next three months are as follows: January February March $64,200 $78,100 $86,500 5,300 5,900 7,000 48,800 53,200 58,600 $118,300 $137,200 $152,100 Other operating expenses include $3,500 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, 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 Salaries Utilities Other operating expenses Total 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 Payments of prior month's expense Payments of current month's expense Total cash payments ✓ January 27,900 ✔ February March 88.
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 $27,900. The budgeted expenses for the next three months are as follows: January February March $64,200 $78,100 $86,500 5,300 5,900 7,000 48,800 53,200 58,600 $118,300 $137,200 $152,100 Other operating expenses include $3,500 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, 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 Salaries Utilities Other operating expenses Total 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 Payments of prior month's expense Payments of current month's expense Total cash payments ✓ January 27,900 ✔ February March 88.
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