Schedule of Cash Payments for a Service Company Horizon Financial Inc. was organ
ID: 2422237 • Letter: S
Question
Schedule of Cash Payments for a Service Company
Horizon Financial Inc. was organized on February 28, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows:
Depreciation, insurance, and property taxes represent $9,000 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. Seventy 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. Enter all amounts as positive numbers.
$
PS:
Please provide a detailed solution to each. Thanks.
March $52,400 April 64,200 May 68,900Explanation / Answer
Solution:
Horizon Financial Inc. Schedule of Cash payment for Selling and Administrative Expenses For the Three Months Ending May 31,2016 March April May March Expenses Paid in March 36,680 - - Paid in April - 15,720 - April Expenses - Paid in April - 44,940 Paid in May - - 19,260 May Expenses - - Paid in May - - 48,230 Total Cash Payments 36,680 60,660 67,490Related Questions
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