Exercise 14 11 Preparing a schedule of cash payments for selling and administrative expenses LO 14 4 The budget director for Munoz 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 Complete the schedule of cash payments for S A expenses by filling in the missing amounts Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter Req A 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 $6,200 $6,200 $6,200 Salary expense 6,300 6,800 7,200 Cleaning supplies 2,840 2,750 3,000 Insurance expense 1,900 1,900 1,900 Depreciation on computer 2,500 2,500 2,500 Rent 2,200 2,200 2,200 Miscellaneous expenses 660 660 660 Total operating expenses $22,600 $23,010 $23,660 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 $23,300 $18,110 $18,860 Req B and C Determine the amount of salaries payable and prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter b Salaries payable c Prepaid insurance

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Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4 The budget director for Munoz Cleaning Services prepared the following

Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4

The budget director for Munoz 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

Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

Req A

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	$6,200	$6,200	$6,200
Salary expense	6,300	6,800	7,200
Cleaning supplies	2,840	2,750	3,000
Insurance expense	1,900	1,900	1,900
Depreciation on computer	2,500	2,500	2,500
Rent	2,200	2,200	2,200
Miscellaneous expenses	660	660	660
Total operating expenses	$22,600	$23,010	$23,660
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	$23,300	$18,110	$18,860

Req B and C

Determine the amount of salaries payable and prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.