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 $13,860 Accounts Receivable $2,470 Prepaid Insurance $770 Total Current Assets $17,100 Property, Plant & Equipment Equipment & Fixtures $19,780 Less: Accumulated Depreciation ($3,470) $16,310 Total Assets $33,410 Liabilities Current Liabilities: Accounts Payable $2,530 Total Liabilities $2,530 Stockholders' Equity Common Stock, no par $9,010 Retained Earnings $21,870 Total Stockholders' Equity $30,880 Total Liabilities and Stockholders' Equity $33,410 The following information is also included: Sales fees 70% cash and 30% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $35,400 in July, $40,800 in August and $43,300 in September. Monthly costs include: $1,270 per month for rent, $5,800 a month for salaries plus 5% bonus for fees earned over $36,800 in a month, $420 for depreciation, $250 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $230 per month. Complete the following budgets for the third quarter.
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 $13,860 Accounts Receivable $2,470 Prepaid Insurance $770 Total Current Assets $17,100 Property, Plant & Equipment Equipment & Fixtures $19,780 Less: Accumulated Depreciation ($3,470) $16,310 Total Assets $33,410 Liabilities Current Liabilities: Accounts Payable $2,530 Total Liabilities $2,530 Stockholders' Equity Common Stock, no par $9,010 Retained Earnings $21,870 Total Stockholders' Equity $30,880 Total Liabilities and Stockholders' Equity $33,410 The following information is also included: Sales fees 70% cash and 30% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted fees earned for this quarter are: $35,400 in July, $40,800 in August and $43,300 in September. Monthly costs include: $1,270 per month for rent, $5,800 a month for salaries plus 5% bonus for fees earned over $36,800 in a month, $420 for depreciation, $250 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $230 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 | $13,860 | |
Accounts Receivable | $2,470 | |
Prepaid Insurance | $770 | |
Total Current Assets | $17,100 | |
Property, Plant & Equipment | ||
Equipment & Fixtures | $19,780 | |
Less: |
($3,470) | $16,310 |
Total Assets | $33,410 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $2,530 | |
Total Liabilities | $2,530 | |
Common Stock, no par | $9,010 | |
$21,870 | ||
Total Stockholders' Equity | $30,880 | |
Total Liabilities and Stockholders' Equity | $33,410 |
The following information is also included:
- Sales fees 70% cash and 30% on account.
- The balance in the Accounts Receivable account is the sales on account from last quarter.
- Budgeted fees earned for this quarter are: $35,400 in July, $40,800 in August and $43,300 in September.
- Monthly costs include: $1,270 per month for rent, $5,800 a month for salaries plus 5% bonus for fees earned over $36,800 in a month, $420 for depreciation, $250 for Insurance Expense, and 7% of sales fees earned for Miscellaneous Expense, and utilities run $230 per month.
Complete the following budgets for the third quarter.
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