ACCOUNTING
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 22
EX 22-21 Rejuvenation Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July–September), 2011. The Accrued Expenses Payable balance on July 1 is $24,000. The budgeted expenses for the next three months are as follows: July August September Salaries $58,200 $63,500 $74,500 Utilities 5,300 5,600 7,100 Other operating expenses 48,500 52,700 58,200 ________ ________ ________ Total $112,000 $121,800 $139,800 ________ ________ ________ ________ ________ ________ Other operating expenses include $10,500of monthly depreciation expense and $600of monthly insurance expense that was prepaid for the year on March 1of the current 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 July 1relates to the expenses incurred in June. Prepare a schedule of cash payments for operations for July, August, and September.
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