The budget director for Stuart 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.

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

	October	November	December
Budgeted s&a expenses
equipment lease expense	6500	6500	6500
salary expense	6100	6600	7000
cleaning supplies	2830	2800	3090
insurance expense	1700	1700	1700
depreciation on computer	2200	2200	2200
rent	2000	2000	2000
misc. expenses	650	650	650
total operating expenses	21980	22450	23140
SCHEDULE OF CASH PAYMENTS FOR S&A EXPENSES
equipment lease expense
prior months salary expense, 100%
cleaning supplies
insurance premium
depreciation on computer
rent
misc. expenses
total disbursements for operating expenses

b.) salaries payable:

c.) prepaid insurance