EX 21-20 schedule of cash payments Green Mountain Financial Inc. was organized o
ID: 2457100 • Letter: E
Question
EX 21-20 schedule of cash payments
Green Mountain Financial Inc. was organized on February 28, 2014. Projected selling and administrative expenses for each of the first three months of operations are as follows:
March …………………. $ 45,800
April …………………… $ 56,900
May ……………………. $71,000
Depreciation, insurance, and property taxes represent $ 8,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. Sixty percent of the remainder of the expenses are expected to 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 March, April and May
Explanation / Answer
Schedule of Cash Payments Particulars March April May Total Projected selling & administrative expenses 45800 56900 71000 0 Less: Depreciation, Insurance & Property Taxes -8000 -8000 -8000 0 Projected selling & administrative payment 37800 48900 63000 149700 Particulars March April May Total March 22680 15120 0 37800 April 0 29340 19560 48900 May 0 0 37800 37800 Total 22680 44460 57360 124500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.