The budget director for Adams Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter. Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. October November December Budgeted S&A Expenses Equipment lease expense Salary expense $ 5,000 $ 5,000 $ 5,000 6,300 6,800 7,200 Cleaning supplies Insurance expense Depreciation on computer Rent 2,850 2,720 3,020 1,200 1,200 1,200 1,600 1,600 1,600 1,900 1,900 1,900 Miscellaneous expenses 790 790 790 Total operating expenses $ 19,640 $ 20,010 $ 20,710 Schedule of Cash Payments for S&A Expenses Equipment lease expense Prior month's salary expense, 100% Cleaning supplies Insurance premium Depreciation on computer Rent Miscellaneous expenses
The budget director for Adams Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter. Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. October November December Budgeted S&A Expenses Equipment lease expense Salary expense $ 5,000 $ 5,000 $ 5,000 6,300 6,800 7,200 Cleaning supplies Insurance expense Depreciation on computer Rent 2,850 2,720 3,020 1,200 1,200 1,200 1,600 1,600 1,600 1,900 1,900 1,900 Miscellaneous expenses 790 790 790 Total operating expenses $ 19,640 $ 20,010 $ 20,710 Schedule of Cash Payments for S&A Expenses Equipment lease expense Prior month's salary expense, 100% Cleaning supplies Insurance premium Depreciation on computer Rent Miscellaneous expenses
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
Transcribed Image Text:The budget director for Adams Cleaning Services prepared the following list of expected selling and administrative expenses. All
expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month
following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of
operations; accordingly, there are no beginning account balances.
Required
a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
October
November
December
Budgeted S&A Expenses
Equipment lease expense
Salary expense
$
5,000 $
5,000 $
5,000
6,300
6,800
7,200
Cleaning supplies
Insurance expense
Depreciation on computer
Rent
2,850
2,720
3,020
1,200
1,200
1,200
1,600
1,600
1,600
1,900
1,900
1,900
Miscellaneous expenses
790
790
790
Total operating expenses
$
19,640 $ 20,010 $
20,710
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month's salary expense, 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
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Step 1: Meaning of the term salaries payable and prepaid insurance :
VIEWStep 2: a. Schedule of Cash Payments for S & A Expenses :
VIEWStep 3: (b) Computation of the amount of salaries payable reported at the end of 4th quarter :
VIEWStep 4: (c) Computation of the amount of prepaid insurance reported at the end of 4th quarter :
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