Exercise 10.30 a-b Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020....

  
 
 

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Exercise 10.30 a-b Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2019 and expected service revenues for 2020 are as follows: November 2019, $88,000; December 2019, $69,000; January 2020, $109,000; February 202o, $119,000; and March 2020, $129,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are: December 2019, $14,000; January 2020, $12,000; February 2020, $16,000; and March 2020, $18,000. Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total. (1) Schedule of expected collections from clients. ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020 January February March Quarter November December January February March Total collections %24 (2) Schedule of expected payments for landscaping supplies. ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020 January February March Quarter December January February March Total payments Determine the following balances at March 31, 2020. Accounts receivable Accounts payable Exercise 10.30 a-b Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2019 and expected service revenues for 2020 are as follows: November 2019, $88,000; December 2019, $69,000; January 2020, $109,000; February 202o, $119,000; and March 2020, $129,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are: December 2019, $14,000; January 2020, $12,000; February 2020, $16,000; and March 2020, $18,000. Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total. (1) Schedule of expected collections from clients. ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020 January February March Quarter November December January February March Total collections %24 (2) Schedule of expected payments for landscaping supplies. ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020 January February March Quarter December January February March Total payments Determine the following balances at March 31, 2020. Accounts receivable Accounts payable

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As per given conditions ENVIRONMENTAL LANDSCAPING INC For The Quarter End... View the full answer