Schedule of Cash Payments Tadpole Learning Systems Inc. was organized on Februar

Question

Schedule of Cash Payments

Tadpole Learning Systems 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 $24,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. 65% 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.

For the Three Months Ending May 31

Explanation / Answer

TADPOLE LEARNING SYSTEMS INC. Schedule ofcash payments for selling and general expenses for three months ending May 31 March April May March expenses:     Paid in March 59605     Paid in April 32095 April expenses:    Paid in April 54340    Paid in May 29260 May Expenses :     Paid in May 48035 Total cash payments 59605 86435 77295 Workings: March April May Estimated expenses 115700 107600 97900 Less: Deprecation,             insurance , property tax * 24000 24000 24000 Cash expenses 91700 83600 73900 Expenses paid on the same month (65%) 59605 54340 48035 Expenses paidin the next month   (35%) 32095 29260 25865 * Depreciation is not a cash expense     Annual insurance premium is pre paid in February.     Property tax is to be paid in november.

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