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Ruddy 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
Ruddy 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 $ 18,100 August $18,100 September $ 18,100 Sales commissions (4 percent of sales) 1,700 1,700 1,700 Supplies expense 360 390 420 Utilities 1,200 1,200 1,200 Depreciation on store 3,600 equipment 3,600 3,600 Rent 7,200 7,200 7,200 Miscellaneous 590 590 590 Total S&A expenses before $32,750 $32,780 interest $ 32,810 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 August September Required a. Prepare a schedule of cash payments for selling and administrative expenses. Salary expense Sales commissions Schedule of Cash Payments for S&A Expenses July August September Supplies expense Utilities Depreciation on store equipment tes Rent Miscellaneous Total payments for S&A expenses S 0 $ 0 $ 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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