Instructions (a) Prepare a schedule of expected collections from custon Instru (
ID: 2572668 • Letter: I
Question
Instructions (a) Prepare a schedule of expected collections from custon Instru (a) Co (b) Pr (b) Prepare a schedule of expected payments for direct materials for Manch Prepre schahles for cash E23-18 Green Landscaping Inc. is preparing its budget for the first recetipts and cash paoments next step in the budgeting process is to prepare a cash receipts schedule ar of 20 and determine ending E23-2 medi mate 120 h -and a cash ments schedule. To that end the following information has been cas alanoes for balance sheet.e LO 4) Clients usually pay 60% of their fee in the month that service is perf. month after, and 10% the second month after receiving service. , 30% Actual service revenue for 2016 and expected service revenues for 2017 2016, $80,000; December 2016, $90,000; January 2017, $100,000. Eebe $120,000; and March 2017, $140,000. Instr Prep Purchases of landscaping supplies (direct materials) are paid 60% in purchase and 40% the following month. Actual purchases for 2016 and e moth chases for 2017 are December 2016, $14,000, January 2017, $12.000ed p expected February 2017, $15,000; and March 2017, $18,000. Instructions (a) Prep are the following schedules for each month in the first quarter of 2017 and quarter in total: (I) Expected collections from clients. (2) Expected payments for landscaping supplies. P2 fol (b) Determine the following balances at March 31, 2017: (1) Accounts receivable. (2) Accounts payable 2.Explanation / Answer
1) GREEN LANDSCAPPING INC. Schedule of expected cash collection from clients for January, February and March 2017 January February March Regarding sales of November 8000 (80000*10%) Regarding sales of December 27000 9000 (90000*30%) (90000*10%) Regarding sales of January 60000 30000 10000 (100000*60%) (100000*30%) (100000*10%) Regarding sales of February 72000 36000 (120000*60%) (120000*30%) Regarding sales of March 84000 (140000*60%) Total collection 95000 111000 130000 GREEN LANDSCAPPING INC. Schedule of expected cash payments for landscaping supplies for January, February and March 2017 January February March Regarding purchase of December 5600 (14000*40%) Regarding purchase of January 7200 4800 (12000*60%) (12000*40%) Regarding purchase of February 9000 9000 (15000*60%) (15000*60%) Regarding purchase of March 10800 (18000*60%) Total payments 12800 13800 19800 2) Balance of accounts receivable as on March 31, 2017 = (120000*10%)+(140000*30%) = $54000 Balance of accounts payable as on March 31, 2017 = (18000*40%) = $7200