70.2K

Verified Solution

Link Copied!

Schedule of Cash Payments

Excel Learning Systems Inc. was organized on September 30, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows:

October	$175,500
November	161,500
December	147,000

Depreciation, insurance, and property taxes represent $37,000 of the estimated monthly expenses. The annual insurance premium was paid on September 30, and property taxes for the year will be paid in June. The company expects that 68% of the remainder of the expenses will be paid in the month in which they are incurred, with the balance to be paid in the following month.

Prepare a schedule indicating cash payments for selling and administrative expenses for October, November, and December.

Excel Learning Systems Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending December 31, 2016
	October	November	December
October expenses:
Paid in October	$fill in the blank 1
Paid in November		$fill in the blank 2
November expenses:
Paid in November		fill in the blank 3
Paid in December			$fill in the blank 4
December expenses:
Paid in December			fill in the blank 5
Total cash payments	$fill in the blank 6	$fill in the blank 7	$fill in the blank 8

Answer & Explanation Solved by verified expert

See Answer