The budget director for Baird 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 Cleaning supplies Insurance expense Depreciation on computer Rent Miscellaneous expenses Total operating expenses 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 Total disbursements for operating expenses $ 6,500 $ 6,500 $ 5,700 6,200 2,810 2,750 1,200 1,200 1,500 1,500 1,500 2,200 2,200 2,200 670 670 670 $ 20,580 $ 21,020 $ 21,760 $ 19,380 $ 17,820 $ 6,500 6,600 3,090 1,200 Reg B and C> 18,660
The budget director for Baird 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 Cleaning supplies Insurance expense Depreciation on computer Rent Miscellaneous expenses Total operating expenses 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 Total disbursements for operating expenses $ 6,500 $ 6,500 $ 5,700 6,200 2,810 2,750 1,200 1,200 1,500 1,500 1,500 2,200 2,200 2,200 670 670 670 $ 20,580 $ 21,020 $ 21,760 $ 19,380 $ 17,820 $ 6,500 6,600 3,090 1,200 Reg B and C> 18,660
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Complete a,b,& c please and thank you
Transcribed Image Text:The image shows a financial scheduling table used for budgeting selling and administrative (S&A) expenses for Baird Cleaning Services. This table is designed to help complete a schedule of cash payments for S&A expenses by filling in missing amounts.
**Text Details:**
- **Header:**
- The budget director for Baird Cleaning Services prepared a list of expected S&A expenses. Cash payments are made when expenses are incurred, except for salary expenses (paid the following month) and insurance (prepaid and effective October 1).
- **Requirements:**
- a. Complete the schedule for cash payments by filling in missing amounts.
- b. Determine the end-of-fourth-quarter pro forma balance sheet for salaries payable.
- c. Determine the prepaid insurance on the end-of-fourth-quarter pro forma balance sheet.
**Table Detail:**
1. **Budgeted S&A Expenses:**
- Presented for the months October, November, and December.
- Categories include:
- Equipment lease expense: $6,500 for each month.
- Salary expense: October $5,700, November $6,200, December $6,600.
- Cleaning supplies, Insurance expense, Depreciation on the computer, Rent, Miscellaneous expenses (amounts vary).
2. **Total Operating Expenses:**
- October: $20,580
- November: $21,020
- December: $21,760
3. **Schedule of Cash Payments for S&A Expenses:**
- Includes categories such as Equipment lease expense, prior salary (100%), Cleaning supplies, Insurance premium, Depreciation on the computer, Rent, Miscellaneous expenses.
4. **Total Disbursements for Operating Expenses:**
- October: $19,380
- November: $17,820
- December: $18,660
The provided sections might include blank spaces intended for users to fill based on their calculations or given examples.
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