Waterway Landscaping Inc. is preparing budget for the first quarter of 2022. The next step in...

 

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Waterway Landscaping Inc. is preparing budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $102,400; December 2021, $115,200; January 2022, $128,000; February 2022, $153,600; and March 2022, $179,200. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $17,920; January 2022, $15,360; February 2022, $19,200; and March 2022, $23,040. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. November $ December January February March Total collections $ 1215 January WATERWAY LANDSCAPING INC. Schedule of Expected Collections From Clients February March $ $ Quarter $ (2) Expected payments for landscaping supplies. January December $ January February WATERWAY LANDSCAPING INC. Schedule of Expected Payments for Landscaping Supplies February March Quarter $ March Total $ $ $ $ payments (b) Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable $ Waterway Landscaping Inc. is preparing budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $102,400; December 2021, $115,200; January 2022, $128,000; February 2022, $153,600; and March 2022, $179,200. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $17,920; January 2022, $15,360; February 2022, $19,200; and March 2022, $23,040. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. November $ December January February March Total collections $ 1215 January WATERWAY LANDSCAPING INC. Schedule of Expected Collections From Clients February March $ $ Quarter $ (2) Expected payments for landscaping supplies. January December $ January February WATERWAY LANDSCAPING INC. Schedule of Expected Payments for Landscaping Supplies February March Quarter $ March Total $ $ $ $ payments (b) Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable $