The budget director for Gibson Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter Complete this question by entering your answers in the tabs below. Req B and C Req A Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. Req B and C Req A Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. October November December Budgeted S&A Expenses 5,400 $ 5,400 $ Equipment lease expense 5,400 Salary expense 7,400 6,900 7,800 Cleaning supplies Insurance expense Depreciation on computer 2,850 2,770 3,040 1,100 1,100 1,100 2,200 2,200 2,200 Rent Miscellaneous expenses 1,800 1,800 1,800 650 650 650 Total operating expenses 21,320 21,990 $ 20,900 Schedule of Cash Payments for S&A Expenses Equipment lease expense Prior month's salary expense, 100% Cleaning supplies Insurance premium Depreciation on computer Rent Miscellaneous expenses 17,520 18,290 Total disbursements for operating expenses 17,300 The budget director for Gibson Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter. Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the amount of salaries payable and prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter. b. Salaries payable Prepaid insurance C. Req A Req B and C>
