Question
Schedule of Cash Payments for a Service Company SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the
Schedule of Cash Payments for a Service Company
SafeMark 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 | $136,700 |
April | 125,800 |
May | 114,500 |
Depreciation, insurance, and property taxes represent $29,000 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. 65% 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 indicating cash payments for selling and administrative expenses for March, April, and May.
SafeMark Financial Inc. | |||
Schedule of Cash Payments for Selling and Administrative Expenses | |||
For the Three Months Ending May 31 | |||
March | April | May | |
March expenses: | |||
Paid in March | $fill in the blank 1 | ||
Paid in April | $fill in the blank 2 | ||
April expenses: | |||
Paid in April | fill in the blank 3 | ||
Paid in May | $fill in the blank 4 | ||
May expenses: | |||
Paid in May | fill in the blank 5 | ||
Total cash payments | $fill in the blank 6 | $fill in the blank 7 | $fill in the blank 8 |
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