Semester Case - My Assistant, Inc. Now that My Assistant has completed its first full year of operations, W.T. is ready to budget for the upcoming year. He'd like to concentrate on the first quarter (July-September) before examining the entire year. W.1. has already completed projections for estimated jobs. Service Revenue Budget. Based on the projects completed by W.T. (above), compute the amount of sales revenue My Assistant should col- lect each month. Evaluate gross fees only (e.g. do not deduct the PayPal fee at this point). Recall that different customers receive different rates: those paying by PayPal and on account are charged $15 per job. The customer that pays in advance pays for three months' of service and is charged $14.50 per job. That customer last paid in June for service to be provided in June, July, and August (4 jobs completed per month). Also, recall that fees received through PayPal are received at job completion. Accounts Receivable are due the month following the month in which the service is provided. On June 30, the balance in Accounts Receivable was $600. My Assistant Services Revenue Projections July 1 - September 30, Year 2 July August September Projected Jobs: PayPal On Account Prepaid Total 84 52 80 48 4 132 88 56 4 148 4 140 My Assistant Services Revenue Budget July 1 - September 30, Year 2 He knows that one thing he'll need to do is complete a cash budget for the quarter. In order to complete the cash budget, he'll need to work with the schedules that follow. Your task is to complete them. July August September Projected Service Revenue: PayPal On Account Prepaid Total Budgeted Revenue Schedule of Cash Receipts: PayPal On Account Prepaid Total Budgeted Collections Selling and Administrative Expense Budget. In addition to the supplies ex- pense estimated above, My Assistant will continue to have the following selling and administrative costs: Supplies Purchases and Payments Budget. To ensure that he has an ade- quate amount of supplies on hand, W.T. would like to maintain an ending supplies balance equal to 50% of the estimated supplies expense for the following month. October's budgeted supplies expense is $60. Recall that My Assistant had $30 of supplies on hand at June 30. Effective July 1, My Assistant's supplier now requires that 80% of purchases on account be paid in the month of purchase; the remaining 20% are paid in the month following the month of purchase. At June 30, My Assistant owed the sup- plier $25. PayPal fee Gas expense Social Media Manager $0.75 per job . Estimated at $2.50 per job that W.1. completes. $100 per month $1 per PayPal job scheduled .W.T. estimates that 10% of her scheduling fee will still be due at the end of each month. $12 per job, paid upon job completion. .W.T. estimates 30 jobs per month will be completed this way. $400 per month $100 per month, paid 6 months in advance. Balance in Prepaid Advertising was $300 at 6/30. . The next payment is due October 1. Contract worker payments for jobs W.T.'s salary Advertising My Assistant Supplies Purchases Budget July 1 - September 30, Year 2 July August $40 September $50 Budgeted supplies expense $30 Plus: Desired ending supplies Supplies needed Less: Beginning supplies Required purchases (on account) My Assistant Schedule of Payments for Supplies July 1 - September 30, Year 2 W.T. also knows he'll need to account for the equipment of $500 he purchased in June. Since he'll be using the equipment to generate revenue, he knows he needs to match its cost against the revenue that's generated. He's learned that the process of expensing long- term assets such as equipment is known as depreciation, but he's un- sure how to record this. He has been told that the equipment should last five years and will be worthless at the end of that time period. W.J. expects to use the equipment equally in every month. Based on this, what would be a reasonable amount of Depreciation Expense each month? Round your computations to the nearest whole dollar. July August September Payment for current month purchases Payment for previous month purchases Total budgeted payments to supplier What is the amount of Accounts Payable My Assistant will report on its pro forma balance sheet at the end of the first quarter (September 30)? Based on the above, prepare an expense and payments budget for these items for July: Budgeted Budgeted Expense Payment Collection (PayPal) expense Gas expense $ Scheduling expense - social media manager Delivery expense - contract workers (friends) W.T.'s salary Advertising expense Depreciation expense Total $ What is the amount of fees payable that My Assistant will report on the July 31 pro forma balance sheet? What is the amount of Prepaid Advertising that My Assistant will report on the July 31 pro forma balance sheet? Based on your estimates above, what is the amount of Depreciation Expense that My Assistant will report for all of Year 2? $ $