The budget director for Jordan 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. October November December Budgeted S&A Expenses Equipment lease expense Salary expense Cleaning supplies Insurance expense $ 5,700 $ 5,700 $ 5,700 5,400 5,900 6,300 2,830 2,750 3,080 1,800 1,800 1,800 Depreciation on computer 2,200 2,200 2,200 Rent 1,600 1,600 1,600 Miscellaneous expenses 760 760 760 Total operating expenses $ 20,290 $ 20,710 $ 21,440 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 Total disbursements for operating expenses $ 21,690 $ 16,210 $ 17,040 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 c. Prepaid insurance