October November DecemberBudgeted S&A ExpensesSalary Expense10,000 10,500 11,000Sales Commissions 5% of Sales.5,3005,000 5,5002,000Insurance Expense2,0002,000Rent2,4002,4002,4001,5001,5001,500Depreciation on equipmentUtilities1,1001,3001,500Total Operating Expenses22,00023, 20023,700Schedule of Cash Payments for S&AExpensesSalary Expense?10,500?100% of Prior Month Sales5,100??CommissionsInsurance Expense2,0002,000?2,0002,400Rent?100% of Prior Months Utilities1,200??ExpenseTotal Payments for S&A Expenses???What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement?Multiple Choice$64,400$68,900$23,700$63,900

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What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement? Multiple Choice

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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Question

October November December
Budgeted S&A Expenses
Salary Expense
10,000 10,500 11,000
Sales Commissions 5% of Sales.
5,300
5,000 5,500
2,000
Insurance Expense
2,000
2,000
Rent
2,400
2,400
2,400
1,500
1,500
1,500
Depreciation on equipment
Utilities
1,100
1,300
1,500
Total Operating Expenses
22,000
23, 200
23,700
Schedule of Cash Payments for S&A
Expenses
Salary Expense
?
10,500
?
100% of Prior Month Sales
5,100
?
?
Commissions
Insurance Expense
2,000
2,000
?
2,000
2,400
Rent
?
100% of Prior Months Utilities
1,200
?
?
Expense
Total Payments for S&A Expenses
?
?
?
What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement?
Multiple Choice
$64,400
$68,900
$23,700
$63,900

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