Waterway Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected.

Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service.

Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $81,600; December 2021, $91,800;

January 2022, $102,000; February 2022, $122,400; and March 2022, $142,800.

Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $14,280; January 2022, $12,240; February 2022, $15,300; and March 2022, $18,360.

(a)

Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total:

(1) Expected collections from clients.

Waterway Landscaping inc, is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $81,600; December 2021, $91,800; January 2022, \$102,000; February 2022,\$122,400; and March 2022, \$142,800. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021,\$14,280; January 2022, \$12,240; February 2022, $15,300; and March 2022, \$18,360. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. Determine the following balances at March 31, 2022: (1) Accounts receivable (2) Accounts payable