The budget director for Solomon 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

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

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

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

4. 	October	November	December
   Budgeted S&A Expenses
   Equipment lease expense	$6,800	$6,800	$6,800
   Salary expense	5,100	5,600	6,000
   Cleaning supplies	2,850	2,760	3,080
   Insurance expense	1,400	1,400	1,400
   Depreciation on computer	1,900	1,900	1,900
   Rent	1,900	1,900	1,900
   Miscellaneous expenses	710	710	710
   Total operating expenses	$20,660	$21,070	$21,790
   Schedule of Cash Payments for S&A Expenses
   Equipment lease expense	$6,800	$6,800	$6,800
   Prior months salary expense, 100%	0	5,100	5,600
   Cleaning supplies	2,850	2,760	3,080
   Insurance premium		0	0
   Depreciation on computer	0	0	0
   Rent	1,900	1,900	1,900
   Miscellaneous expenses	710	710	710
   Total disbursements for operating expenses	$20,660	$17,270	$18,090