Schedule of Cash Payments Excel Learning Systems Inc. was organized on September

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 $32,000 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 63% 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.

Explanation / Answer

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: $152700 Paid In October $96201 Paid In November $56499 November Expenses : 142000 Paid In November 89460 Paid In December 52540 December Expenses : 129200 Paid In December 81396 Total Cash Payments $96201 $145959 $133936

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