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

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