Fanning is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses thatfollows. 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 expenseSales commissions (4 percent of sales)Supplies expenseJuly$17,8003,400August$17,800September$17,8003,4003,400290320350Utilities2,9003,0005,8002,9003,0005,8002,9003,0005,800Depreciation on store equipmentRentMiscellaneous720720720Total S&A expenses before interest$33,910$33,940$33,970Requireda. Prepare a schedule of cash payments for selling and administrative expenses.b. Determine the amount of utilities payable as of September 30.c. Determine the amount of sales commissions payable as of September 30.

Selling and Administrative Expenses Selling and administrative expenses which is considered to be…

Fanning 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 Sales commissions (4 percent of sales) Supplies expense Utilities July $17,800 3,400 August $17,800 3,400 320 September $17,800 3,400 290 350 2,900 3,000 5,800 720 2,900 3,000 5,800 2,900 Depreciation on store equipment Rent 3,000 5,800 720 Miscellaneous 720 Total S&A expenses before interest $33,910 $33,940 $33,970 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30.

Fanning 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 Sales commissions (4 percent of sales) Supplies expense Utilities July $17,800 3,400 August $17,800 3,400 320 September $17,800 3,400 290 350 2,900 3,000 5,800 720 2,900 3,000 5,800 2,900 Depreciation on store equipment Rent 3,000 5,800 720 Miscellaneous 720 Total S&A expenses before interest $33,910 $33,940 $33,970 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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