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Preparing a schedule of cash payments for selling and administrative expenses Wynn is a retail company specializing in men’s hats Its budget director prepared the list of expected operating expenses

Preparing a schedule of cash payments for selling and administrative expenses

Wynn 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 the expenses are incurred except sales commissions and utilities, which are paid in the month after they are incurred. July is the first month of operations, so there are no beginning account balances.

 

July

August

September

Salary expense

$14,000

$14,000

$14,000

Sales commissions (4 percent of sales)

1,700

1,700

1,700

Supplies expense

360

390

420

Utilities

1,100

1,100

1,100

Depreciation on store equipment

2,800

2,800

2,800

Rent

6,600

6,600

6,600

Miscellaneous

690

690

690

Total S&A expenses before interest

$27,250

$27,280

$27,310

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.

Jul 01 2020 View more View Less

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