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    Jackson Sales Company Cash Payment Schedule

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    Jackson Sales Company
    Selling and Administrative Expenses Budget
    For the Quarter Ended June 30, 2005
    Apr May Jun Total
    Salaries $1,000 $1,200 $1,300 $3,500
    Rent 200 200 200 600
    Utilities 120 180 220 520
    Depreciation 80 80 80 240
    Other 500 600 650 1,750
    Total $1,900 $2,260 $2,450 $6,610

    Jackson Sales Company
    Purchase Budget
    For the Quarter Ended June 30, 2005
    Apr May Jun Total
    Forecasted Unit Sales 70 80 90 240
    + Desired Ending Inventory 16 18 19 19
    = Total Units Needed 86 98 109 259
    -Beginning Inventory (15) (16) (18) (15)
    = Units to Be Purchased 71 82 91 244
    x Cost per Unit $100 $100 $100 $100
    = Cost of Purchase $7,100 $8,200 $9,100 $24,400

    Selling and administrative expenses are paid in the month incurred and purchases are paid in the month following the purchase. Purchases for March 2005 are $6,800. No equipment purchases or additional expenditures are made during the quarter.

    Required: Prepare a cash payment schedule for the second quarter of 2005.

    Reference
    Werner, M. L. & Jones, K. H. (2004). Introduction to Accounting A User Perspective. 2nd Upper Saddle River, NJ: Pearson Education Inc.

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    Jackson Sales Company
    Selling and Administrative Expenses Budget
    For the Quarter Ended June 30, 2005
    Apr May Jun Total
    Salaries $1,000 $1,200 $1,300 $3,500
    Rent 200 200 200 600
    Utilities 120 180 220 520
    ...

    Solution Summary

    The solution helps in computing cash payment schedules. The administrative expenses budgets are provided.

    $2.19

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