Question - Acherman Company was organized on May 31 of the current year. Projected operating expenses for each of the first three months of operating are as follows: June $64000, July $81000, August $104500.
Depreciation, insurance, and property taxes represent $15000 of the estimated monthly operating expenses. The annual insurance premium was paid on May 31, and property taxes for the year will be paid in December. Three-fourths of the remainder of the operating 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 operating expenses for June, July, and August.