argaret's Massages is a day spa providing relaxing treatment to its clients. Margaret's Massages balance sheet for June 30, 2021 is as follows: Margaret's MassagesBalance SheetJune 30, 2021 Assets Current Assets: Cash $15,270 Accounts Receivable $1,840 Prepaid Insurance $770 Total Current Assets $17,880 Property, Plant & Equipment Equipment & Fixtures $18,620 Less: Accumulated Depreciation ($3,470) $15,150 Total Assets $33,030 Liabilities Current Liabilities: Accounts Payable $1,900 Total Liabilities $1,900 Stockholders' Equity Common Stock, no par $10,420 Retained Earnings $20,710 Total Stockholders' Equity $31,130 Total Liabilities and Stockholders' Equity $33,030 The following information is also included: Sales fees 80% cash and 20% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September. Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month. Complete the following budgets for the third quarter.
argaret's Massages is a day spa providing relaxing treatment to its clients. Margaret's Massages balance sheet for June 30, 2021 is as follows: Margaret's MassagesBalance SheetJune 30, 2021 Assets Current Assets: Cash $15,270 Accounts Receivable $1,840 Prepaid Insurance $770 Total Current Assets $17,880 Property, Plant & Equipment Equipment & Fixtures $18,620 Less: Accumulated Depreciation ($3,470) $15,150 Total Assets $33,030 Liabilities Current Liabilities: Accounts Payable $1,900 Total Liabilities $1,900 Stockholders' Equity Common Stock, no par $10,420 Retained Earnings $20,710 Total Stockholders' Equity $31,130 Total Liabilities and Stockholders' Equity $33,030 The following information is also included: Sales fees 80% cash and 20% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September. Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month. Complete the following budgets for the third quarter.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...
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Margaret's Massages is a day spa providing relaxing treatment to its clients.
Margaret's Massages balance sheet for June 30, 2021 is as follows:
Margaret's MassagesBalance SheetJune 30, 2021
Assets | ||
---|---|---|
Current Assets: | ||
Cash | $15,270 | |
$1,840 | ||
Prepaid Insurance | $770 | |
Total Current Assets | $17,880 | |
Property, Plant & Equipment | ||
Equipment & Fixtures | $18,620 | |
Less: |
($3,470) | $15,150 |
Total Assets | $33,030 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $1,900 | |
Total Liabilities | $1,900 | |
Common Stock, no par | $10,420 | |
$20,710 | ||
Total Stockholders' Equity | $31,130 | |
Total Liabilities and Stockholders' Equity | $33,030 |
The following information is also included:
- Sales fees 80% cash and 20% on account.
- The balance in the Accounts Receivable account is the sales on account from last quarter.
- Budgeted fees earned for this quarter are: $37,100 in July, $39,700 in August and $43,100 in September.
- Monthly costs include: $1,140 per month for rent, $6,000 a month for salaries plus 6% bonus for fees earned over $35,900 in a month, $430 for depreciation, $170 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $240 per month.
Complete the following budgets for the third quarter.
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