Schedule of Cash Payments for a Service Company SafeMark Financial Inc. was orga

Question

Schedule of Cash Payments for a Service Company

SafeMark Financial Inc. was organized on February 28. 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 February 28, and property taxes for the year will be paid in June. 60% 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.

March $122,200 April 116,100 May 105,700
Upgrade to macOS High Sierra Enjoy the latest technologies and retinements to your favorite apps Install 22-3 Excercises & Problems Calculator Details Schedule of Cash Payments for a Service Company SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March April $122,200 116,100 105,700 Depreciation, insurance and property taxes represent $26,000 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 60% 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. SafeMark Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses Paid in May Total cash payments Check My Work 2 more Check My Work uses remaining. Previous Next Assignment Score: 42.86% All work saved. Email Instructor Save and Exit Submit Assignment for Grading

Explanation / Answer

March April May March expenses Paid in March 57,720 Paid in April 38,480 April expenses: Paid in April 54,060 Paid in May 36,040 May expenses: Paid in May 47,820 total cash payments 57,720 92540 83860 March = (122,200-26000)*60% 57720 (122,200-26000)*40% 38480 April (116,100-26000)*60% 54060 (116100-26000)*40% 36040 May (105,700-26000)*60% 47820 (105700-26000)*40% 31880

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