Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 21, Problem 21.20EX
To determine
Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.
To Compute: The schedule of cash payments for operations.
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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). The Accrued
Expenses Payable balance on January 1 is $26,700. The budgeted
expenses for the next three months are as follows:
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February
March
Salaries
$61,400
$74,800
$82,800
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5,100
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6,700
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51,600
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$113,800 $132,000 $146,300
Other operating expenses include $3,400 of monthly depreciation
expense and $800 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.
EastGate Physical Therapy Inc.
Schedule of Cash Payments for…
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). The Accrued Expenses Payable balance on January 1 is $32,800. The budgeted expenses for the next three months are as
follows:
January
February
March
Salaries
$75,400
$91,800
$101,700
Utilities
6,200
6,900
8,200
Other operating expenses
57,300
62,500
68,800
Total
$138,900
$161,200
$178,700
Other operating expenses include $4,100 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% 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. Enter all amounts as positive numbers.
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). The Accrued Expenses Payable balance on January
1 is $32,500. The budgeted expenses for the next three
months are as follows:
January February
March
Salaries
$74,800
$91,000 $100,800
Utilities
6,200
6,800
8,100
Other operating expenses
57,600
62,800
69,100
Total
$138,600 $160,600
$178,000
Other operating expenses include $4,100 of monthly
depreciation expense and $900 of monthly insurance
expense that was prepaid for the year on May 1 of the
previous year. Of the remaining expenses, 65% 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.
EastGate Physical Therapy Inc.
Schedule of Cash Payments for…
Chapter 21 Solutions
Financial & Managerial Accounting
Ch. 21 - Prob. 1DQCh. 21 - Briefly describe the type of human behavior...Ch. 21 - What behavioral problems are associated with...Ch. 21 - What behavioral problems are associated with...Ch. 21 - Under what circumstances would a static budget be...Ch. 21 - How do computerized budgeting systems aid firms in...Ch. 21 - Why should the production requirements Set forth...Ch. 21 - Prob. 8DQCh. 21 - A. Discuss the purpose of the cash budget. B. If...Ch. 21 - Give an example of how the capital expenditures...
Ch. 21 - Flexible budgeting At the beginning of the period,...Ch. 21 - Production budget Pasadena Candle Inc. projected...Ch. 21 - Direct materials purchases budget Pasadena Candle...Ch. 21 - Direct labor cost budget Pasadena Candle Inc....Ch. 21 - Cost of goods sold budget Prepare a cost of goods...Ch. 21 - Prob. 21.6BECh. 21 - Personal budget At the beginning of the school...Ch. 21 - Flexible budget for selling and administrative...Ch. 21 - Static budget versus flexible budget The...Ch. 21 - Flexible budget for Assembly Department Steelcase...Ch. 21 - Production budget Weightless Inc. produces a Bath...Ch. 21 - Sales and production budgets Sonic Inc....Ch. 21 - Prob. 21.7EXCh. 21 - Prob. 21.8EXCh. 21 - Prob. 21.9EXCh. 21 - Prob. 21.10EXCh. 21 - Direct materials purchases budget Anticipated...Ch. 21 - Direct labor cost budget Ace Racket Company...Ch. 21 - Production and direct labor cost budgets Levi...Ch. 21 - Factory overhead cost budget Sweet Tooth Candy...Ch. 21 - Cost of goods sold budget Delaware Chemical...Ch. 21 - Cost of goods sold budget The controller of...Ch. 21 - Prob. 21.17EXCh. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Prob. 21.20EXCh. 21 - Capital expenditures budget On January 1, 20Y6,...Ch. 21 - Forecast sates volume and sales budget For 20Y8,...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Bridgeport...Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Forecast sales volume and sales budget Sentinel...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Mercury Shoes Inc....Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Nursing staff budget Mercy Hospital staffs its...Ch. 21 - Parking lot staff budget Adventure Park is a large...Ch. 21 - Prob. 3ADMCh. 21 - Prob. 21.1TIFCh. 21 - Communication The city of .Milton has an annual...
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