Selcombe, Selcombe and Selcombe Media are three generations of the one family involved for nearly 50 years

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Selcombe, Selcombe and Selcombe Media are three generations of the one family involved for nearly 50 years in providing public relations services. The firm is preparing its fees budget for the year ending 30 June 2020. It budgets on a quarterly basis in a manner similar to figure 23.5 . Craig Selcombe is the most senior member of the family and estimates that he will bill clients for 40 hours per week and have 2 weeks annual leave during January. Alexander Selcombe is Craig’s son and intends to take 4 weeks leave during June and to bill clients for 38 hours per week. Craig’s grandson, Samuel, is new to the firm and enjoys fishing on Friday afternoons and so usually bills clients for only 36 hours per week. Samuel intends to take 2 weeks leave beginning in July.

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Figure 23.5

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Required

(a) Prepare the income budget for Selcombe, Selcombe and Selcombe Media for the year ending 30 June 2020, showing projected dollar service revenues by quarter as per the income statement.
Assume there are 13 weeks in each of the four quarters of the year ending 30 June 2020.

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Accounting

ISBN: 9780730363224

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie

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