Question
Schedule of Cash Payments EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (JanuaryMarch). The Accrued Expenses Payable balance
Schedule of Cash Payments
EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (JanuaryMarch). The Accrued Expenses Payable balance on January 1 is $26,600. The budgeted expenses for the next three months are as follows:
January | February | March | ||||
Salaries | $61,200 | $74,500 | $82,500 | |||
Utilities | 5,100 | 5,600 | 6,700 | |||
Other operating expenses | 47,100 | 51,300 | 56,500 | |||
Total | $113,400 | $131,400 | $145,700 |
Other operating expenses include $3,400 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
Prepare a schedule of cash payments for operations for January, February, and March.
January | February | March | |
Payments of prior month's expense | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
Payments of current month's expense | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
Total payments | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started