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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
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 Salary expense $18,200 August $18,200 September $ 18,200 Sales commissions (4 percent 2,200 2,200 2,200 of sales) Supplies expense 340 370 400 Utilities 1,300 1,300 1,300 Depreciation on store 3,100 3,100 3,100 equipment Rent 6,500 6,500 6,500 Miscellaneous 730 730 730 Total S&A expenses before $32,370 $32,400 $ 32,430 interest Required a. Prepare a schedule of cash payments for selling and administrative expenses. Salary expense Sales commissions Supplies expense Schedule of Cash Payments for S&A Expenses 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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