Ch 8 Homework

Schedule of cash payments for a service company Horizon Financial fnc. 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 $28,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28 , and propert taxes for the year will be paid in June. 68% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the batance to bet paik 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 Depreciation, insurance, and property taxes represent $28,000 of the estimated monthly expenses. The annual insurance premium was paid taxes for the year will be paid in June. 68% of the remainder of the expenses are expected to be paid in the month in which they are incurre 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