Expenses and Cash Disbursements. Danell Andersen, the treasurer of Danish Ancient Studies Association, is planning an expense budget for 1999 in Danish krone. Rent for the office is expected to amount to DKr6,000 for the year and will be paid in a lump sum during January 1999. Insurance costing DKr840 for the year is to be prepaid in January for the entire year. Salaries for the employees have been budgeted at DKr72,000 for the year and are evenly distributed throughout the year. An outside service has been engaged to obtain speakers and to schedule visits to archaeological digs during the year. The entire cost for the year, estimated at DKr36,000, must be paid during September. It is estimated that the services will be distributed throughout the year as follows:

Telephone and postage have been budgeted at DKr600 each quarter with payment being made during the quarter. Travel expenses for the year of DKr6,000 will be paid during the second quarter with the cost being equally divided between the second and third quarters of the year.
Depreciation on office furniture and various implements has been estimated at DKr600 for the year. Supplies costing DKr300 are to be used each quarter with payment for the entire year being budgeted for February.
Required:
1. Prepare an accrual expense budget for Danell Andersen for 1999 by quarters.
2. Convert the expense budget into a cash payments budget for 1999 by quarters.

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First quarter. Second quarter Third quarter. Fourth quarter. DKr 3,000 12,000 15,000 6,000