Virginia Jackson Is Opening Jackson Realty on January 2 All Selling and Administrative Costs Are Paid When Incurred Except

question 22

Essay

Virginia Jackson is opening Jackson Realty on January 2.For several weeks she has been busy putting together an operating budget for the first quarter of operation for her new business.Virginia has estimated her selling and administrative (S&A)costs as follows:
$\begin{array}{lccc}&\text { January } & \text { February } &\text { March }\\\text { Depreciation } & \$ 1,000 & \$ 1,000 & \$ 1,000 \\\text { Marketing expenses } & 2,000 & 1,400 & 1,000\\\text { Miscellaneous costs } & 500& 400 & 400 \\\text { Rent expense } & 5,000 & 5,000 & 5,000 \\\text { Salary expense } & 4,000 & 8,000 & 8,000 \\\text { Sales commissions } & 1,000&1,200& 1,400\\\text { Utilities expense } &\underline{ 1,000} &\underline{ 800 } &\underline{ 1,000 }\\\text { Total S\&A cost before interest } &\underline{ \$ 14,500 }&\underline{ \$ 17,800} &\underline{ \$ 17,800}\end{array}$ All selling and administrative costs are paid when incurred except utilities,marketing expenses,and sales commissions.These items are paid in the month following the month incurred.
Required:
1)Prepare a schedule of cash payments for selling and administrative expenses for January through March.
2)What liabilities,in what amounts,would be reported on the pro forma balance sheet as of March 31?

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Definitions:

Crowds

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A place that provides care and social interaction for elderly or disabled adults during the day, allowing primary caregivers respite.

Continuous Care

Ongoing support and medical attention provided to patients, especially during recovery or for chronic conditions.

Constructive Play

Play involving the creation or construction of something, typically allowing children to experiment with objects and materials.