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Category > Accounting Posted 04 Aug 2017 My Price 9.00

Physical Therapy Inc.

Schedule of cash payments for a service company

 

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March), 2017. The Accrued Expenses Payable balance on January 1 is

 

$15,000. The budgeted expenses for the next three months are as follows:

 

 

 

 

January

 

February

 

march

Salaries

$56,900

 

$  68,100

 

$  72,200

Utilities

2,400

 

2,600

 

2,500

Other operating expenses

  32,300

 

     41,500

 

     44,700

Total

$91,600

 

$112,200

 

$119,400

 

Other operating expenses include $3,000 of monthly depreciation expense and $500 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

 

Prepare a schedule of cash payments for operations for January, February, and March.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 04 Aug 2017 08:08 PM My Price 9.00

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