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	$171,600
November	163,000
December	148,300

Depreciation, insurance, and property taxes represent $37,000 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 74% 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

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	99,604
Paid in November		34,996
November expenses:
Paid in November		93,240
Paid in December			32,760
December expenses:
Paid in December			82,362
Total cash payments	99,604	128,236	115,122
Note 1
	October	November	December
Total Expenses	171,600	163,000	148,300
Less: Depreciation, insurance, and property taxes	37,000	37,000	37,000
Other remaining expense	134,600	126,000	111,300