Reference: Survey of Accounting 6th edition Book

These are practice study questions

Dobson Company expects to begin operating on January 1. The company's master budget contained the following operating expense budget: January February March Salary expenses $118,888 $36,888 $36,888 Sales commissions, 5% of sales 24,888 38,888 28,888 Utilities 2,999 2,999 2,999 Depreciation on store equipment 1,888 1,888 1,888 Rent 2,299 2,299 2,299 Miscellaneous 1,888 1,888 1,888 Total operating expenses $70,699 $79,599 $77;599 [ Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of cash to be paid for operating expenses during the month of January is: