Question
Gibson is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid
Gibson is a retail company specializing in men's 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. Salary expense July $17,900 August September $17,900 $17,900 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent 3,100 3,100 3,100 300 330 360 2,800 2,800 2,800 2,900 2,900 2,900 7,100 7,100 7,100 Miscellaneous 620 620 620 Total S&A expenses before interest $34,720 $34,750 $34,780 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for S&A Expenses July August September Total payments for S&A expenses $ 0 $ 0 $ 0 Determine the amount of utilities payable and sales commissions payable as of September 30. b. Utilities payable c. Sales commissions payable
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