Schedule of Cash Payments for a Service Company
SafeMark Financial Inc. was organized on February 28. Projectedselling and administrative expenses for each of the first threemonths of operations are as follows:
| March | $147,500 |
| April | 137,200 |
| May | 124,900 |
Depreciation, insurance, and property taxes represent $31,000 ofthe estimated monthly expenses. The annual insurance premium waspaid on February 28, and property taxes for the year will be paidin June. 70% of the remainder of the expenses are expected to bepaid in the month in which they are incurred, with the balance tobe paid in the following month.
Prepare a schedule indicating cash payments for selling andadministrative expenses for March, April, and May.
| SafeMark Financial Inc. |
| Schedule of Cash Payments for Selling andAdministrative Expenses |
| For the Three Months Ending May 31 |
| March | April | May |
| March expenses: | | | |
| Paid in March | $ | | |
| Paid in April | | $ | |
| April expenses: | | | |
| Paid in April | | | |
| Paid in May | | | $ |
| May expenses: | | | |
| Paid in May | | | |
| Total cash payments | $ | $ | $ |
