Question

Schedule of Cash Payments Excel Learning Systems Inc. was organized on September 30, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows: October $180,000 November 167,400 December 152,300 Depreciation, insurance, and property taxes represent $38,000 of the estimated monthly expenses. The annual insurance premium was paid on September 30, and property taxes for the year will be paid in June. The company expects that 72% of the remainder of the expenses will 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 October, November, and December. Excel Learning Systems Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending December 31, 2016 October November December October expenses: Paid in October $ Paid in November $ November expenses: Paid in November Paid in December $ December expenses: Paid in December Total cash payments $ $ $

Answer 1

Prepare a schedule indicating cash payments for selling and administrative expenses for October, November, and December.

Schedule of cash payments for selling and administrative expense

For the Three months ending December 31,2016

	October	November	December
October expense
Paid in October	102240
Paid in November		39760
November expense
Paid in November		93168
Paid in December			36232
December expense
Paid in December			82296
Total Cash payments	102240	132928	118528