Response to the following problem:
Peanut Learning Systems Inc. was organized on July 31, 2012. Projected selling and administrative expenses for each of the first three months of operations are as follows:
August $137,000
September 165,000
October 140,000
Depreciation, insurance, and property taxes represent $30,000 of the estimated monthly expenses. The annual insurance premium was paid on July 31, and property taxes for the year will be paid in December. Sixty percent 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 August, September, and October.