Select Physical Therapy Inc is planning its cash payments fo

Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September). The Accrued Expenses Payable balance on July 1 is $26,100. The budgeted expenses for the next three months are as follows:

July August September Salaries $60,000 $73,100 $80,900

Utilities 5,000 5,500 6,500

Other operating expenses 45,600 49,700 54,700

Total $110,600 $128,300 $142,100

Other operating expenses include $3,300 of monthly depreciation expense and $800 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, and September. Enter all amounts as positive numbers. Select Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending September 30 July August September Payments of prior month\'s expense $ 26100

$

$

Payment of current month\'s expense

Total payment $

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$

Solution

For Physical Therapy Inc. Cash Payment Budget June July August sept Opening 26100 31950 37260 Expenses for the month 110600 128300 142100 Less- Depreciation 3300 3300 3300 Less- Insurance 800 800 800 Net expenses for the month 106500 124200 138000 Paid 70% 74550 86940 96600 Total paid (opening + 70%) 100650 118890 133860 Closing Balance (30%) 26100 31950 37260 41400