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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 Fanning Cleaning Services prepared the following

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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 Fanning 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. Reg 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 6,700 6,600 2.850 1,500 2,000 6,700 7,100 2,720 1,500 2,000 6,700 7,500 3,090 1,500 2,000 2,000 2,400 2,000 2,400 780 22,830 2,000 2,400 780 23,200 780 $ $ $ 23,970 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 TTTTTT $ 21,730 $ 19,200 $ 20,070 Req A Req B and C Determine the amount of salaries payable and prepajd insurance the company will report on its pro forma balance sheel the end of the fourth quarter.... b. Salaries payable c. Prepaid insurance

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