Question

Preparing a schedule of cash payments for selling and administrative expenses The controller for Braddock Laundry Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments except salary expense and insurance are paid for in the month incurred. Salary is paid in the month following its incursion. The annual insurance premium is paid in advance on January 1. January is the first month of operations. Accordingly, there are no beginning account balances. January March February Budgeted Selling and Administrative Expenses Equipment depreciation Salary expense Cleaning supplies Insurance expense Equipment maintenance expense Leases expense Miscellaneous expenses $ 6,200 $ 6,200 $ 6,200 7,200 1,100 600 8,000 8,000 1,000 600 940 600 500 1,600 400 500 500 1,600 400 1,600 400 $18,240 Total S&A expenses $18.300 $17,600 Schedule of Cash Payments for Selling and Administrative Expenses Equipment depreciation Prior month's salary expense, 100% Cleaning supplies Insurance premium Equipment maintenance expense Leases expense Miscellaneous expenses Total payments for S&A expenses $10,700 $11,440 $11,600 Required a. Complete the schedule of cash payments for selling and administrative expenses by filling in the missing amounts. b. Determine the amount of salaries payable the company will report on its quarterly pro forma balance sheet. c. Determine the amount of prepaid insurance the company will report on its quarterly pro forma balance sheet.

Answer 1

Answer for selling and Adminishatise 9. Schedule of Cash Payments expended for 3 months January February March 8000 9000 940 Joo Equipment Depreciation salay Expense Cleaning Suppliers In341496 Expense Equipment Maigta hence ' EXρρης Lexo Eχρεοε Miscellaneous Expense Jooo 3200 500 500 soo 1600 1600 400 400 Total payments for selling ( 10700 | 11440 11600 and Admistrative Expenge Equipment Depreciation B oon. cash expenditure, hence it will consifered not in cash payment Insurance Expense is paid when they are incuned. They are inceared in January. Monthly Insurance Expense. is & 600. According to this Total Instrance Expense 15 $ 600 X 12 = $7200. o 6. Amount of salqules Payable the company will report on its quarterly pro-forma balance sheet According the policies of company with regards to salaries, the company says salary in the monthy following its incurs/on. He salary of January is payable in the February

Company pays salqules of January and February in February and March respectively salary of March is payable in the month of April . Amount of salaules payable the company will report on it's quarterly pro formy Balance sheet = $ 7200 7200 c. Amount of Prepaid Insurance the company will report on its quarterly pro forma Balance sheet. Total Prepaid Insurance (7200: 600 X 12 months) paid in Jany quy - Mogthly Prepaid Insyance Expense (600X 3 months) charged as Insurance Expense Amount of nepald Insurance, the company will report on its quarterly pro formy balance sheet. (1800 5400 The report on Amount of Prepald Insurance, the company will its quarterly proforma Balance sheet : $ 5400