Rejuvenation Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July?September), 2011.
Question:
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:
Other operating expenses include $10,500 of monthly depreciation expense and $600 of monthly insurance expense that was prepaid for the year on March 1 of 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 1 relates to the expenses incurred in June. Prepare a schedule of cash payments for operations for July, August, andSeptember.
Step by Step Answer:
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren