Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 8, Problem 19E
Schedule of cash payments for 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:
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
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Schedule of Cash Payments for a Service Company
Oakwood 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
Depreciation, insurance, and property taxes represent $28,000 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. 66% 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.
$128,000
121,600
110,700
Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.
Oakwood Financial Inc.
Schedule of Cash Payments for Selling and
Administrative Expenses
For the Three Months Ending May 31
March April
March expenses:
Paid in March
Paid in April
April expenses:
Paid in April
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May expenses:
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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
Depreciation, insurance, and property taxes represent
$19,000 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. 61% 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.
$88,600
82,400
75,000
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
March April
March expenses:
Paid in March
Paid in April
April expenses:
Paid in April
Paid in May
May expenses:
Paid in May
Total cash payments
May
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
$78,400
April
83,500
May
96,900
Depreciation, insurance, and property taxes represent $10,000 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.
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…
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Briefly describe the type of human behavior...Ch. 8 - What behavioral problems are associated with...Ch. 8 - What behavioral problems are associated with...Ch. 8 - Under what circumstances would a static budget be...Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Why should the timing of direct materials...Ch. 8 - Prob. 9DQCh. 8 - Give an example of how the capital expenditures...
Ch. 8 - At the beginning of the period, the Fabricating...Ch. 8 - Pasadena Candle Inc. projected sales of 800,000...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Prob. 5BECh. 8 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 8 - At the beginning of the school year, Craig Kovar...Ch. 8 - Digital Solutions Inc. uses flexible budgets that...Ch. 8 - Static budget versus flexible budget The...Ch. 8 - Prob. 4ECh. 8 - Production budget Healthy Measures Inc. produces a...Ch. 8 - Sales and production budgets Sonic Inc....Ch. 8 - Professional foes earned budget for a service...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Direct labor cost budget Ace Racket Company...Ch. 8 - Prob. 13ECh. 8 - Factory overhead cost budget Sweet Tooth Candy...Ch. 8 - Cost of goods sold budget Delaware Chemical...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Schedule of cash payments for service company...Ch. 8 - Prob. 20ECh. 8 - Capital expenditures budget On January 1, 20Y6,...Ch. 8 - Prob. 1PACh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Cash budget The controller of Bridgeport...Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Prob. 1PBCh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Prob. 4PBCh. 8 - Cash budget The controller of Mercury Shoes Inc....Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Analyze Johnson Stores staffing budget for...Ch. 8 - Prob. 2MADCh. 8 - Prob. 3MADCh. 8 - Prob. 4MADCh. 8 - Ethics in Action The director of marketing for...Ch. 8 - Prob. 3TIFCh. 8 - Evaluating the budgeting system in a service...Ch. 8 - Static budget for a service company A hank manager...Ch. 8 - Objectives of the master budget Dominos Pizza LLC...Ch. 8 - When compared to static budgets, flexible budgets:...Ch. 8 - Prob. 2CMACh. 8 - Ming Company has budgeted sales at 6,300 units for...Ch. 8 - Krouse Company produces two products, forged...
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