Depreciation, insurance, and property taxes represent $8,000 of the estimated mo
ID: 2903551 • Letter: D
Question
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.
Green Mountain Financial Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31, 2014
March
April
May
March expenses:
Paid in March
Correct 9
Paid in April
Correct 11
April expenses:
Paid in April
Correct 14
Paid in May
Correct 16
May expenses:
Paid in May
Correct 19
Total cash payments
Correct 21
Correct 22
$
Green Mountain Financial Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31, 2014
March
April
May
March expenses:
Paid in March
$Correct 9
Paid in April
$Correct 11
April expenses:
Paid in April
Correct 14
Paid in May
$Correct 16
May expenses:
Paid in May
Correct 19
Total cash payments
$Correct 21
$Correct 22
$
Explanation / Answer
Green Mountain Financial Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31, 2014
March
April
May
March expenses:
45800-8000
= 37800
Paid in March
37800*60%
= 22680
Paid in April
37800*40%
= 15120
April expenses:
56900
Green Mountain Financial Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31, 2014
March
April
May
March expenses:
45800-8000
= 37800
Paid in March
37800*60%
= 22680
Paid in April
37800*40%
= 15120
April expenses:
56900
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