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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. July August Salary expense $18,600 $18,600 September $18.600 Sales commissions (4 percent 2,500 2,500 2,500 of sales) Supplies expense 270 300 330 Utilities 2,000 2,000 2,000 Depreciation on store 3,800 3,800 3.800 equipment Rent 6,200 6,200 6,200 Miscellaneous 680 680 680 Total S&A expenses before $34,050 $34,080 $ 34,110 interest Required a. Prepare a schedule of cash payments for selling and administrative expenses. Salary expense Schedule of Cash Payments for S&A Expenses Sales commissions Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total payments for S&A expenses July August September 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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