The budget director for Kanosh 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 expenses 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:

Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.

Determine the amounts of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.

Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

Budgeted S&A Expenses :

Equipment lease expense October $5,300 November 5,300 December 5,300

Salary expense 5,400 November 5,900 December 6,300

Cleaning supplies 2,840 November 2,790 Dec 3,040

Insurance expense 1,900 November 1,900 December 1,900

Depreciation on computer 1,800 November 1,800 December 1,800

October: Rent 2,400 November 2,400 December 2,400

Miscellaneous expenses October 750 November 750 December 750

Total operating expenses October $20390 November $20,390 Dec $20,390

Schedule of Cash Payments for S&A Expenses

Equipment lease expense

Prior months salary expense, 100%

Cleaning supplies

Insurance premium

Depreciation on computer

Rent

miscellaneous expenses

Total disbursement for operating expenses October:$22,690 November 16,640 December $17,390

B) salaries payable

C) prepaid insurance