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Thornton 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 September $ 18,100 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous July $ 18,100 2,000 August $ 18,100 2,000 2,000 320 350 380 2,500 2,500 2,500 3,100 3,100 3,100 5,700 5,700 5,700 690 690 690 Total S&A expenses before interest $ 32,410 $ 32,440 $ 32,470 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.

Thornton 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 September $ 18,100 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous July $ 18,100 2,000 August $ 18,100 2,000 2,000 320 350 380 2,500 2,500 2,500 3,100 3,100 3,100 5,700 5,700 5,700 690 690 690 Total S&A expenses before interest $ 32,410 $ 32,440 $ 32,470 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
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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ces Thornton 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 September $ 18,100 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous July $ 18,100 2,000 August $ 18,100 2,000 2,000 320 350 380 2,500 2,500 2,500 3,100 3,100 3,100 5,700 5,700 5,700 690 690 690 Total S&A expenses before interest $ 32,410 $ 32,440 $ 32,470 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. Complete this question by entering your answers in the tabs below. Req A Req B and C Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for Selling and Admin Expenses July August September Total payments for S&A expenses $ 0 $ 0 $ 0 <Req A Req B and C >
Transcribed Image Text:ces Thornton 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 September $ 18,100 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous July $ 18,100 2,000 August $ 18,100 2,000 2,000 320 350 380 2,500 2,500 2,500 3,100 3,100 3,100 5,700 5,700 5,700 690 690 690 Total S&A expenses before interest $ 32,410 $ 32,440 $ 32,470 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. Complete this question by entering your answers in the tabs below. Req A Req B and C Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for Selling and Admin Expenses July August September Total payments for S&A expenses $ 0 $ 0 $ 0 <Req A Req B and C >
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