Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses October November December 20,000 10,000 7,000 8,400 9,000 1,600 56,000 ? 10,100 7,000 ? 1,700 2 20,500 21,000 10,500 10,300 7,000 8,400 9,000 2,000 57,700 7,000 8,400 9,000 1,800 57,200 20,500 ? 7,000 ? 2 ? ? ? 7,000 8,400 ? ? What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter?
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses October November December 20,000 10,000 7,000 8,400 9,000 1,600 56,000 ? 10,100 7,000 ? 1,700 2 20,500 21,000 10,500 10,300 7,000 8,400 9,000 2,000 57,700 7,000 8,400 9,000 1,800 57,200 20,500 ? 7,000 ? 2 ? ? ? 7,000 8,400 ? ? What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Give me correct answer with explanation
Transcribed Image Text:Budgeted Selling and Administrative Expenses
Salary Expense
Sales Commissions 5% of Sales
Insurance Expense
Rent
Depreciation on equipment
Utilities
Total Operating Expenses
Schedule of Cash Payments for Selling and
Administrative Expenses
Salary Expense
100% of Prior Month Sales Commissions
Insurance Expense
Rent
100% of Prior Months Utilities Expense
Total Payments for Selling and Administrative Expenses
October November December
20,000
10,000
7,000
8,400
9,000
1,600
56,000
?
10,100
7,000
?
1,700
?
20,500
10,500
7,000
8,400
9,000
1,800
57,200
20,500
?
7,000
?
?
?
21,000
10,300
7,000
8,400
9,000
2,000
57,700
?
?
7,000
8,400
?
?
What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the
fourth quarter?
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