Broke Corp. reports operating expenses in two categories (1) selling and (2) general administrative. The adjusted trial balance at December 31, 2021, including the following expenses: Accounting and legal fees 120,000 Advertising 150,000 Freight-out 80,000 Interest 70,000 Loss on sale of long-term investment 30,000 Officers’ salaries 225,000 Rent for office space 220,000 Sales salaries and commissions 140,000 One-half of the rented space is occupied by the Sales Department. How much is Broke’s total selling expenses for 2021? a. 480,000 b. 400,000 c. 370,000 d. 360,000
Broke Corp. reports operating expenses in two categories (1) selling and (2) general administrative. The adjusted trial balance at December 31, 2021, including the following expenses: Accounting and legal fees 120,000 Advertising 150,000 Freight-out 80,000 Interest 70,000 Loss on sale of long-term investment 30,000 Officers’ salaries 225,000 Rent for office space 220,000 Sales salaries and commissions 140,000 One-half of the rented space is occupied by the Sales Department. How much is Broke’s total selling expenses for 2021? a. 480,000 b. 400,000 c. 370,000 d. 360,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Broke Corp. reports operating expenses in two categories (1) selling and (2) general administrative. The adjusted trial balance at December 31, 2021, including the following expenses:
Accounting and legal fees 120,000
Advertising 150,000
Freight-out 80,000
Interest 70,000
Loss on sale of long-term investment 30,000
Officers’ salaries 225,000
Rent for office space 220,000
Sales salaries and commissions 140,000
One-half of the rented space is occupied by the Sales Department. How much is Broke’s total selling expenses for 2021?
Accounting and legal fees 120,000
Advertising 150,000
Freight-out 80,000
Interest 70,000
Loss on sale of long-term investment 30,000
Officers’ salaries 225,000
Rent for office space 220,000
Sales salaries and commissions 140,000
One-half of the rented space is occupied by the Sales Department. How much is Broke’s total selling expenses for 2021?
a. 480,000
b. 400,000
c. 370,000
d. 360,000
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