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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

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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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
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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