Question

DOOR Calculator 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: May March $181.100 April 165,400 153,200 Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 20, and prope taxes for the year will be paid in June. 63% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be 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 March April March expenses Paid in March Paid in April April expenses Paid in April Paid in May May expenses Pald in May Total cash payments

Answer 1

Horizintal Financial Inc. Schedule of cash Payments for selling and Admin expenses for the three months ending May 31 March April May March expense: paid in March (63%) $ 1,14,093 paid in April (37%) $ 67,007 April expense: paid in April (63%) $ 1,06,092 paid in May (37%) $ 62,308 May expense: paid in May (63%) $ 96,516 Total Cash Payments $ 1,14,093 $ 1,73,099 $ 1,58,824

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