Question

Schedule of Cash Payments

Excel Learning Systems Inc. was organized on September 30, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows:

October	$149,700
November	139,200
December	126,700

Depreciation, insurance, and property taxes represent $32,000 of the estimated monthly expenses. The annual insurance premium was paid on September 30, and property taxes for the year will be paid in June. The company expects that 61% of the remainder of the expenses will 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 October, November, and December.

Excel Learning Systems Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending December 31, 2016
	October	November	December
October expenses:
Paid in October	$
Paid in November		$
November expenses:
Paid in November
Paid in December			$
December expenses:
Paid in December
Total cash payments	$	$	$

Answer 1

Excel Learning Systems Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending December 31, 2016
	October	November	December
October expenses:
Paid in October	71797	0	0
Paid in November	0	45903	0
November expenses:
Paid in November	65392	0	0
Paid in December	0	41808	0
December expenses:
Paid in December		0	57767
Total cash payments	137189	87711	57767	282667
The expenses to be paid in cash during October, November and Decemberfor each of the months is:
October = 149700-32000 =	117700
November = 139200-32000 =	107200
December = 126700-32000 =	94700
Total	319600
Balance of December to paid in January	36933
Total paid in October, November and December	282667