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:
Depreciation, insurance, and property taxes represent $9,000 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 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:
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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.
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Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.
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Schedule of Cash Payments for Selling and
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Paid in March
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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
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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
$52,400
April
64,200
May
68,900
Depreciation, insurance, and property taxes represent $9,000 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 of cash payments for selling and administrative expenses for March, April, and May.
Chapter 8 Solutions
Managerial Accounting
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