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Swifty Landscaping inc. is preparing its budget for the first quarter of 2022. The next...

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Accounting

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Swifty Landscaping inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts scheduleand a cash payments schedule. To that end, the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $86,400; December 2021, $97,200; January 2022, \$108,000; February 2022, \$129,600; and March 2022,\$151,200. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $15,120; January 2022, $12,960; February 2022, $16.200; and March 2022, \$19,440. (a) Prepare the ftilowing schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. (1) Expected collections from clients. (2) Expected payments for landscaping supplies. Determine the following balances at March 31, 2022: (1) Accounts receivable (2) Accounts payable

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