Ivanhoe Landscaping Inc. is preparing its budget for the first quarter of 2020. 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 performed, 30% the month after, and 10% the second month after receiving service.

Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $92,770; December 2019, $84,270; January 2020, $102,860; February 2020, $121,440; and March 2020, $133,780.

Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $15,460; January 2020, $13,420; February 2020, $16,790; and March 2020, $22,730.

(a)

Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:

(1) Expected collections from clients

January February March Quarter

November $ $ $ $

December

January

February

March

Total collections $ $ $

(2) Expected payments for landscaping supplies.

JanuaryFebruary March Quarter

December $ $ $ $

January

February

March

Total payments $

Determine the following balances at March 31, 2020:

(1) Accounts receivable $

(2) Accounts payable $