Schedule of cash payments for a service company 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: March April May $99,400 94,400 85,900 Depreciation, Insurance, and property taxes represent $21,000 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. Of the remainder of the expenses, 66% 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. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 Line Item Description March expenses: Paid in March Paid in April April expenses: Paid in April Paid In May May expenses: Paid in May Total cash payments March 99,400 X April ☐ ☐ 99,400 X Incorrect May Feedback Check My Work First calculate cash expenses by subtracting noncash expenses. Then, apply the appropriate percentages to each month.
Schedule of cash payments for a service company 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: March April May $99,400 94,400 85,900 Depreciation, Insurance, and property taxes represent $21,000 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. Of the remainder of the expenses, 66% 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. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 Line Item Description March expenses: Paid in March Paid in April April expenses: Paid in April Paid In May May expenses: Paid in May Total cash payments March 99,400 X April ☐ ☐ 99,400 X Incorrect May Feedback Check My Work First calculate cash expenses by subtracting noncash expenses. Then, apply the appropriate percentages to each month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Schedule of cash payments for a service company
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:
March
April
May
$99,400
94,400
85,900
Depreciation, Insurance, and property taxes represent $21,000 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. Of
the remainder of the expenses, 66% 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.
Horizon Financial Inc.
Schedule of Cash Payments for Selling and Administrative
Expenses
For the Three Months Ending May 31
Line Item Description
March expenses:
Paid in March
Paid in April
April expenses:
Paid in April
Paid In May
May expenses:
Paid in May
Total cash payments
March
99,400 X
April
☐ ☐
99,400 X
Incorrect
May
Feedback
Check My Work
First calculate cash expenses by subtracting noncash expenses. Then, apply the appropriate percentages to each month.
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