Gibson 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 Depreciation on store equipment Rent Miscellaneous Total S&A expenses before interest Req A 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. Req B and C July $18,300 2,800 290 Complete this question by entering your answers in the tabs below. 2,500 2,700 5,700 790 $33,080 Total payments for S&A expenses $ Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for S&A Expenses August September $18,300 $18,300 2,800 2,800 320 350 2,500 2,500 2,700 2,700 5,700 5,700 790 790 $33, 110 $33, 140 July August September 0 $ 0 $ 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Gibson: Expected Operating Expenses**

Gibson is a retail company specializing in men's hats. The budget director prepared a list of expected operating expenses for the upcoming months. All items are paid when incurred, except for sales commissions and utilities, which are paid the following month. July marks the first month of operations, so there are no beginning account balances.

| **Expenses**                          | **July** | **August** | **September** |
|---------------------------------------|----------|------------|---------------|
| Salary expense                        | $18,300  | $18,300    | $18,300       |
| Sales commissions (4% of sales)       | 2,800    | 2,800      | 2,800         |
| Supplies expense                      | 290      | 320        | 350           |
| Utilities                             | 2,500    | 2,500      | 2,500         |
| Depreciation on store equipment       | 2,700    | 2,700      | 2,700         |
| Rent                                  | 5,700    | 5,700      | 5,700         |
| Miscellaneous                         | 790      | 790        | 790           |
| **Total S&A expenses before interest** | **$33,080**| **$33,110**  | **$33,140**     |

**Required Tasks**

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.

**Instructions for Completion**

You are required to complete the question by entering your answers in the designated tabs.

**Schedule of Cash Payments for S&A Expenses**

| **Month**     | **July** | **August** | **September** |
|---------------|----------|------------|---------------|
|               |          |            |               |
| **Total payments for S&A expenses** | **$0**    | **$0**        | **$0**         |

**Note:** The total payments should reflect the expenses that are paid in the month they are incurred, with sales commissions and utilities being exceptions, paid in the following month.
Transcribed Image Text:**Gibson: Expected Operating Expenses** Gibson is a retail company specializing in men's hats. The budget director prepared a list of expected operating expenses for the upcoming months. All items are paid when incurred, except for sales commissions and utilities, which are paid the following month. July marks the first month of operations, so there are no beginning account balances. | **Expenses** | **July** | **August** | **September** | |---------------------------------------|----------|------------|---------------| | Salary expense | $18,300 | $18,300 | $18,300 | | Sales commissions (4% of sales) | 2,800 | 2,800 | 2,800 | | Supplies expense | 290 | 320 | 350 | | Utilities | 2,500 | 2,500 | 2,500 | | Depreciation on store equipment | 2,700 | 2,700 | 2,700 | | Rent | 5,700 | 5,700 | 5,700 | | Miscellaneous | 790 | 790 | 790 | | **Total S&A expenses before interest** | **$33,080**| **$33,110** | **$33,140** | **Required Tasks** 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. **Instructions for Completion** You are required to complete the question by entering your answers in the designated tabs. **Schedule of Cash Payments for S&A Expenses** | **Month** | **July** | **August** | **September** | |---------------|----------|------------|---------------| | | | | | | **Total payments for S&A expenses** | **$0** | **$0** | **$0** | **Note:** The total payments should reflect the expenses that are paid in the month they are incurred, with sales commissions and utilities being exceptions, paid in the following month.
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