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 Required Complete the schedule of cash payments for S A expenses by filling in the missing amounts Determine the amount 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 Reg A Req B and C Complete the schedule of cash payments for S A expenses by filling in the missing amounts October November December $ 5,600 $ $ 5,200 2,850 1,700 2,000 5,600 5,700 2,710 1,700 2,000 1,500 670 19,880 5,600 6,100 3,050 1,700 2,000 1,500 Budgeted S A Expenses Equipment lease expense Salary expense Cleaning supplies Insurance expense Depreciation on computer Rent Miscellaneous expenses Total operating expenses Schedule of Cash Payments for S A Expenses Equipment lease expense Prior month's salary expense, 100 Cleaning supplies Insurance premium Depreciation on computer 1,500 670 670 $ 19,520 $ $ 20,620 Rent Miscellaneous expenses Total disbursements for operating expenses $ 20,820 $ 15,680 $ 16,520

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

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

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.

Required

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

image text in transcribed

Reg A Req B and C Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. October November December $ 5,600 $ $ 5,200 2,850 1,700 2,000 5,600 5,700 2,710 1,700 2,000 1,500 670 19,880 5,600 6,100 3,050 1,700 2,000 1,500 Budgeted S&A Expenses Equipment lease expense Salary expense Cleaning supplies Insurance expense Depreciation on computer Rent Miscellaneous expenses Total operating expenses Schedule of Cash Payments for S&A Expenses Equipment lease expense Prior month's salary expense, 100% Cleaning supplies Insurance premium Depreciation on computer 1,500 670 670 $ 19,520 $ $ 20,620 Rent Miscellaneous expenses Total disbursements for operating expenses $ 20,820 $ 15,680 $ 16,520