Schedule of Cash Payments Excel Learning Systems Inc. was organized on September
ID: 2425070 • Letter: S
Question
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:
Depreciation, insurance, and property taxes represent $26,000 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 66% 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.
October $120,900 November 112,400 December 102,300Explanation / Answer
Working Notes: Allocation of monthwise expenses
_______________________________________________________________________________________
October November December______
Total expenses 120,900 112,400 102,300
Less: Depreciation, Insurance & Property tax 26,000 26,000 26,000_______
Balance amount 94,900 86,400 76,300_______
November Expense i.e 86,400 paid in Nov. 66% 57,024
Balance i.e 86400 - 57,024 paid in December 29,376
December expense i.e 76,300 paid in December 66% 50,358
______________________________________________________________________________________
OCTOBER NOVEMBER DECEMBER
Paid in November $ 32,266
November expenses;
December Expense :
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.