Schedule of Cash Disbursement Prestige Hotels, Inc. estimates projected Selling and Administrative expenses forth the 4th Quarter to be as follows: Estimated TOTAL EXPENSES October November December $ $ 107,000.00 125,000.00 115,000.00 $5000 per month $3,000 per month $4,000 per month Paid in month incurred Paid in following month Policy from feb 1 - Jan 31 Taxes due in full January 18 Depreciation Insurance Property taxes 60% of remaining expenses 40% of remaining expenses Required: A. Prepare a cash disbursement schedule for October, November and December. B. Determine the amount of Accounts Payable for the end of each month C. Detemine the Accounts Receivable Balance to be reported in the Balance Sheet on December 31 20Y1. SOLUTION: A December Cash Expenses October Expenses Paid in October Paid in November Prestige Hotels, Inc. Cash Disbursement Schedule for the Three Months Ending December 31, 20Y1 October November 95.000 57,000 38.000 38,000 November Expenses Paid in November Paid in December 113,000 67,800 45,200 45,200 December Expenses Paid in December Paid in January Y2 Total cash disbursements (cash actually paid) 57000 105.800 38,000 45,200 B. A/P Balance at the end of the month (this is always the amount to be paid next month) c. A/P Reported on Balance Sheet December 31, 20Y1 0