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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
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 $ 17,800 August $ 17,800 September $ 17,800 Sales commissions (4 percent 3,400 of sales) 3,400 3,400 Supplies expense 350 380 410 Utilities 2,400 2,400 2,400 Depreciation on store 3,600 3,600 3,600 equipment Rent 7,300 7,300 7,300 Miscellaneous 700 700 700 Total S&A expenses before interest $35,550 $35,580 $ 35,610 Required a. Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for S&A Expenses July Salary expense Sales commissions Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total navments for S&A expenses August September Salary expense Sales commissions Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total payments for S&A expenses b. Determine the amount of utilities payable as of September 30. Utilities payable c. Determine the amount of sales commissions payable as of September 30. Sales commissions payable
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