Question
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, 2018, are as follows: sales
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, 2018, are as follows: sales commissions, $29,000; rent, $10,500; utilities, $4,900; depreciation, $3,400; and miscellaneous, $2,300. Utilities are paid in the month after incurrence. Other expenses are expected to be paid in cash in the month in which they are incurred.
Required
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Determine the amount of budgeted cash payments for January selling and administrative expenses.
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Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet.
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Determine the amount of depreciation expense the store will report on the income statement for the year 2018, assuming that monthly depreciation remains the same for the entire year.
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