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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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