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$124,400

November116,900

December106,400

Depreciation, insurance, and property taxes represent $27,000 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 69% 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

OctoberNovemberDecember

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

Excel Learning Systems Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months (October, November, December) Ending December 31, 2016
Particular	Total Expenses	Month Expense
October expenses:	97,400.00
Paid in October$		67,206.00
Paid in November$		30,194.00
November expenses:	89,900.00
Paid in November		62,031.00
Paid in December$		27,869.00
December expenses:	79,400.00
Paid in December		54,786.00
Total cash payments$$$		242,086.00
Particular	Oct-16	Nov-16	Dec-16
Projected Selling and Administrative Expenses	124,400.00	116,900.00	106,400.00
Less: Depreciation, insurance, and property taxes	(27,000.00)	(27,000.00)	(27,000.00)
(Being Paid Previously and Non cash Expenses)
Balance Expense To be Payable	97,400.00	89,900.00	79,400.00
Now 69% To be paid in Current Month	67,206.00	62,031.00	54,786.00
Balance (100-69=31% ) paid in next Month	-	30,194.00	27,869.00
Paid in Respective Month	67,206.00	92,225.00	82,655.00