PM 8.2.

10D September Reconciliation

Summit Equipment, Inc.

Reconciliation of Actual vs. Budget
For the Month of September 20X6

AMORTIZATION
Date Supplier Name Description Amount Term Jan 20X6 Feb 20X6 Mar 20X6 Apr 20X6 May 20X6 Jun 20X6 Jul 20X6 Aug 20X6 Sep 20X6 Total Carrying Amount
13 Feb 20X6 Ultima Insurance Co. To record the purchase of prepaid insurance for the new equipment. 200,000.00 12 - 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 133,333.33 66,666.67
1 Apr 20X6 JPS Insurance Co. To record the purchase of prepaid insurance for the new equipment. 450,000.00 12 - - - 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 225,000.00 225,000.00
4 June 20X6 Cactus Insurance Co. To record the purchase of prepaid insurance for the new equipment. 550,000.00 12 - - - - - 45,833.33 45,833.33 45,833.33 45,833.33 183,333.33 366,666.67
19 July 20X6 Cactus Insurance Co. To record the purchase of prepaid insurance for the new equipment. 600,000.00 12 - - - - - - 50,000.00 50,000.00 50,000.00 150,000.00 450,000.00
1 Sep 20X6 JPS Insurance Co. To record the purchase of prepaid insurance for the new equipment. 400,000.00 12 - - - - - - - - 33,333.33 33,333.33 366,666.67
TOTALS 2,200,000.00 - 16,666.67 16,666.67 54,166.67 54,166.67 100,000.00 150,000.00 150,000.00 183,333.33 725,000.00 1,475,000.00
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Prepayments Amortization for the month

Actual as of Sep 20X6 (for the month ended Sep 20X6) 2,200,000.00 183,333.33
Budget for the month of Sep 20X6 1,900,000.00 155,333.33 (not available for learning purposes)
Variance 300,000.00 28,000.00

Explanation:
JPS Insurance increased their rates for 20X6 due to a large claim made by Summit last year. The Company's
main machinery equipment that produces camp supplies broke down due to mishandling by the machine operator.
As a result, amortization expense also increased.

PREPARED BY: REVIEWED BY:

SENIOR ACCOUNTANT FINANCE MANAGER

5 Oct 20X6 5 Oct 20X6

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