The budget director for Benson Cleaning Services prepared the following list of expected selling and administratlve expenses. All expenses requiring cash payments are pald for in the month Incurred except salary expense and Insurance. Salary is pald in the month following the month in which it is incurred. The insurance premlum for slx months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.
Required
a. Complete the schedule of cash payments for \( S \& A \) expenses by filling in the missing amounts.
b. Determine the amount of salarles payable the company will report on Its pro forma balance sheet at the end of the fourth quarter.
c. Determine the amount of prepald insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req \( B \) and \( C \)
Complete the schedule of cash payments for S\&A expenses by filling in the missing amounts.
\begin{tabular}{|c|c|c|c|c|c|c|}
\hline & \multicolumn{2}{|c|}{ October } & \multicolumn{2}{|c|}{ November } & \multicolumn{2}{|c|}{ December } \\
\hline \multicolumn{7}{|l|}{ Budgeted S\&A Expenses } \\
\hline Equipment lease expense & \( \$ \) & 6,200 & \( \$ \) & 6,200 & \( \$ \) & 6,200 \\
\hline Salary expense & & 5,400 & & 5,900 & & 6,300 \\
\hline Cleaning supplies & & 2,810 & & 2,780 & & 3,060 \\
\hline Insurance expense & & 1,200 & & 1,200 & & 1,200 \\
\hline Depreciation on computer & & 1,500 & & 1,500 & & 1,500 \\
\hline Rent & & 2,000 & & 2,000 & & 2,000 \\
\hline Miscellaneous expenses & & 680 & & 680 & & 680 \\
\hline Total operating expenses & \( \$ \) & & \( \$ \) & & \( \$ \) & 20,940 \\
\hline \multicolumn{7}{|l|}{ Schedule of Cash Payments for S\&A Expenses } \\
\hline \multicolumn{7}{|l|}{ Equipment lease expense } \\
\hline \multicolumn{7}{|l|}{ Prior month's salary expense, \( 100 \% \)} \\
\hline \multicolumn{7}{|l|}{ Cleaning supplies } \\
\hline \multicolumn{7}{|l|}{ Insurance premium } \\
\hline \multicolumn{7}{|l|}{ Depreciation on computer } \\
\hline \multicolumn{7}{|l|}{ Rent } \\
\hline \multicolumn{7}{|l|}{ Miscellaneous expenses } \\
\hline Total disbursements for operating expenses & \( \$ \) & 18,890 & \( \$ \) & 17,060 & \( \$ \) & 17,840 \\
\hline
\end{tabular}
Req A
Req \( B \) and \( C \)
