The following details have been extracted from the budget of a merchandising company.Rent Expense$9,000 per monthDepreciation Expense$3,500 per month$1,250 per monthInsurance ExpenseMiscellaneous Expense 4% of sales, paid as incurredCommissions Expense 10% of salesSalaries Expense$8,000 per monthSalesDec$75,000Jan$80,000FebMarch$95,000 $110,000Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are paid as andwhen they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.OA. $38,150OB. $54,750O C. $31,700O D. $92,900

The cash payments include the payments for prior periods and current period. The depreciation…

Rent Expense $9,000 per month Depreciation Expense $3,500 per month Insurance Expense $1,250 per month Miscellaneous Expense 4% of sales, paid as incurred Commissions Expense 10% of sales Salaries Expense $8,000 per month Dec Sales $75,000 Jan $80,000 Feb $95,000 March $110,000 Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are p when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the n OA. $38,150 OB. $54,750 OC. $31,700

Rent Expense $9,000 per month Depreciation Expense $3,500 per month Insurance Expense $1,250 per month Miscellaneous Expense 4% of sales, paid as incurred Commissions Expense 10% of sales Salaries Expense $8,000 per month Dec Sales $75,000 Jan $80,000 Feb $95,000 March $110,000 Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are p when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the n OA. $38,150 OB. $54,750 OC. $31,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

K Dirk Ward borrowed $13,000 00 for investment purposes on May 16 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1000 on June 10, $200 on September 21, and $800 on November 16. How much is the accrued interest on December 31 if the rate of interest was 7% on May 16, 7.5% effective August 1, and 7.8% effective November 12 The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
K Dirk Ward borrowed $13,000 00 for investment purposes on May 16 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1000 on June 10, $200 on September 21, and $800 on November 16. How much is the accrued interest on December 31 if the rate of interest was 7% on May 16, 7.5% effective August 1, and 7.8% effective November 12 The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,700 units. It is estimated that warranty repairs will average $16 per unit sold, and 40% of the repairs will be made in Year 1 and 60% in Year 2. In the income statement for Year 1, Puzzles Company should show warranty expense of a. $35,520. b. $23,680. c. $0. d. $59,200.
15
A 7% p.a. demand loan was paid off with payments of $3,000 on April 10th, $2,000 on September 25th and a final payment of $5,447.13 on December 5th. If it uses the standard declining balance method, what was the original amount of the loan back on March 8?
and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 517,000 409,500 480,000 $ 459,400 351,900 524,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March SA 40,000 $ 40,000 $ 74,168 517,000 409,500 480,000 557,000 449,500…
Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. Principal Annual Rate Method for Calculating Minimum Monthly Payment $23,800 3% finance charge+$20+1.5% of principal
$420 principal, 5% exact, 90 days (exact interest is 365 days). please show work.
A company borrows $60,000 by signing a $60,000, 8% 6-year note that requires equal payments of $!2,979 at the end of each year. The first payment will record an interest expense of $4,800 and will reduce principal by $__________.
Karim Corp. requires a minimum $9,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 25,000 $ 33,000 $ 41,000 Cash payments 29,500 31,000 33,000 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $9,400 Total cash available Preliminary cash balance Ending cash…
A $38,000 new car loan is taken out with the terms 12% APR for 48 months. How much are monthly payments on this loan? O A. $1,300.89 B. $1,200.82 C. $1,100.75 D. $1,000.69
Foc