Horizon Financial Inc. was organized on February 28. Projected selling and admin
ID: 2522878 • Letter: H
Question
Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: $170,600 April 162,100 147,500 and property taxes represent $37,000 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 74% 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 of cash payments for selling and administrative expenses for March, April, and May Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March March expenses Paid in April April expenses: Paid in May May expenses Paid in May Next 800 PMExplanation / Answer
Schedule of Cash Payments for Selling and Administrative Expenses :-
Particulars March April May March Expenses :- Paid in March (($170600-$37000)*74%) 98864 Paid in April (($170600-$37000)*26%) 34736 April Expenses :- Paid in April (($162100-$37000)*74%) 92574 Paid in May (($162100-$37000)*26%) 32526 May Expenses :- Paid in May (($147500-$37000)*74%) 81770 Total Cash Payments 98864 127310 114296Related Questions
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