The budget director for Vernon 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 October November December Budgeted S A Expenses Equipment lease expense $6,200 $6,200 $6,200 Salary expense 5,600 6,100 6,500 Cleaning supplies 2,860 2,740 3,060 Insurance expense 1,700 1,700 1,700 Depreciation on computer 1,900 1,900 1,900 Rent 1,700 1,700 1,700 Miscellaneous expenses 610 610 610 Total operating expenses $20,570 $20,950 $21,670 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 disbursements for operating expenses $21,570 $16,850 $17,67 b Salaries payable c Prepaid insurance

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The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for

The budget director for Vernon 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.

	October	November	December
Budgeted S&A Expenses
Equipment lease expense	$6,200	$6,200	$6,200
Salary expense	5,600	6,100	6,500
Cleaning supplies	2,860	2,740	3,060
Insurance expense	1,700	1,700	1,700
Depreciation on computer	1,900	1,900	1,900
Rent	1,700	1,700	1,700
Miscellaneous expenses	610	610	610
Total operating expenses	$20,570	$20,950	$21,670
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 disbursements for operating expenses	$21,570	$16,850	$17,67