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:

Month Amount

March $$115,600$

April $107,500$

May $97,800$

Depreciation, insurance, and property taxes represent $$24,000$ 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. Of the remainder of the expenses, $71\%$ 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.

Horizon Financial Inc.

Schedule of Cash Payments for Selling and Administrative Expenses

For the Three Months Ending May $31$

Line Item Description March April May

March expenses:

Paid in March $Paid in March

Paid in April $Paid in April

April expenses:

Paid in April Paid in April

Paid in May $Paid in May

May expenses:

Paid in May Paid in May

Total cash payments $Total cash payments $Total cash payments $Total cash payments