The following details have been extracted from the budget of a merchandising company: Rent Expense $8,000
Question:
The following details have been extracted from the budget of a merchandising company:
Rent Expense | $8,000 per month |
Depreciation Expense | $3,000 per month |
Insurance Expense | $1,000 per month |
Miscellaneous Expense | 6% of sales |
Commissions Expense | 10% of sales |
Salaries Expense | $9,000 per month |
| December | January | February | March |
Sales | $60,000 | $70,000 | $80,000 | $100,000 |
Commissions and salaries expenses are paid 50% in the month in which they are incurred and the balance in the following month. Rent and miscellaneous expenses are paid when they occur. Insurance is prepaid for the quarter on January 1.
Prepare the schedule of cash payments for the selling and administrative expenses for the first quarter of the next year.
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M