Green Landscaping Inc. is preparing its budget for the first quarter of 2014. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected.

Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and 10% the second month after receiving service.

Actual service revenue for 2013 and expected service revenues for 2014 are November 2013, $94,130; December 2013, $84,860; January 2014, $103,460; February 2014, $121,020; March 2014, $131,610.

Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2013 and expected purchases for 2014 are December 2013, $17,890; January 2014, $14,820; February 2014, $18,380; March 2014, $20,900.

(a) Prepare the following schedules for each month in the first quarter of 2014 and for the quarter in total:

(1) Expected collections from clients.

GREEN LANDSCAPING INC. Schedule of Expected Collections From Clients For the Quarter Ending March 31, 2014

January

February

March

Quarter

November

$

$

$

$

December

January

February

March

Total collections

$

$

$

$

(2) Expected payments for landscaping supplies.

GREEN LANDSCAPING INC. Schedule of Expected Payments for Landscaping Supplies For the Quarter Ending March 31, 2014

January

February

March

Quarter

December

$

$

$

$

January

February

March

Total payments

$

$

$

$

(b) Determine the following balances at March 31, 2014:

(1)		Accounts receivable		$
(2)		Accounts payable		$