Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Benson is a retail company specializing in mens hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid

Benson is a retail company specializing in mens hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances.

July August September
Salary expense $ 17,400 $ 17,400 $ 17,400
Sales commissions (4 percent of sales) 3,400 3,400 3,400
Supplies expense 350 380 410
Utilities 2,500 2,500 2,500
Depreciation on store equipment 3,500 3,500 3,500
Rent 6,800 6,800 6,800
Miscellaneous 700 700 700
Total S&A expenses before interest $ 34,650 $ 34,680 $ 34,710

Required

  1. Prepare a schedule of cash payments for selling and administrative expenses.

  2. Determine the amount of utilities payable as of September 30.

  3. Determine the amount of sales commissions payable as of September 30

image text in transcribed

image text in transcribed

Complete this question by entering your answers in the tabs below. Reg A Reg Band Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for S&A Expenses Judy August September $ 0$ 05 0 Total payments for S&A expenses Req Band C > Complete this question by entering your answers in the tabs below. Req A Reg B and C Determine the amount of utilities payable and sales commissions payable as of September 30. b. Utilities payable c. Sales commissions payable ( Req A Ron Band

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Quantitative Analysis Of Finance And Accounting - New Series

Authors: Lee Cheng Few

2nd Edition

9812386696, 9789812386694

More Books

Students also viewed these Accounting questions