Question
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (JanuaryMarch). The
Schedule of Cash Payments for a Service Company
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 $31,500. The budgeted expenses for the next three months are as follows:
January | February | March | ||||
Salaries | $72,500 | $88,200 | $97,700 | |||
Utilities | 6,000 | 6,600 | 7,900 | |||
Other operating expenses | 55,800 | 60,800 | 67,000 | |||
Total | $134,300 | $155,600 | $172,600 |
Other operating expenses include $4,000 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% 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 | |
Depreciation expenseOther operating expensesPayments of prior month's expenseSalariesUtilities | $- Select - | $- Select - | $- Select - |
Depreciation expenseOther operating expensesPayments of current month's expenseSalariesUtilities | - Select - | - Select - | - Select - |
Total cash payments | $fill in the blank 9 | $fill in the blank 10 | $fill in the blank 11 |
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