Question

Baird is a retail company specializing in men’s hats. Its budget director prepared the list of...

Baird 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.

July August September
Salary expense $ 17,700 $ 17,700 $ 17,700
Sales commissions (4 percent of sales) 1,900 1,900 1,900
Supplies expense 360 390 420
Utilities 2,900 2,900 2,900
Depreciation on store equipment 2,600 2,600 2,600
Rent 6,500 6,500 6,500
Miscellaneous 660 660 660
Total S&A expenses before interest $ 32,620 $ 32,650 $ 32,680

Required

Prepare a schedule of cash payments for selling and administrative expenses.

Determine the amount of utilities payable as of September 30.

Determine the amount of sales commissions payable as of September 30.

Homework Answers

Answer #1
Baird, a Retail Company
Schedule of Cahs Payment for Selling and Administrative Expense
July August September
Salary Expense $17,700 $17,700 $17,700
Sales Comission (4% of Sales) $1,900 $1,900
Supplies Expense $360 $390 $420
Utilities $0 $2,900 $2,900
Rent $6,500 $6,500 $6,500
Miscellaneous $660 $660 $660
Total Payment $25,220 $30,050 $30,080
b. The Amount of Utilities Payment as of September 30 will be $2900
b. The Amount of Sales Comission as of September 30 will be $1900
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ruddy is a retail company specializing in men’s hats. Its budget director prepared the list of...
Ruddy 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. July August September   Salary expense $ 18,500 $ 18,500 $ 18,500   Sales commissions (4 percent of sales) 2,700 2,700 2,700   Supplies expense 330 360 390...
Benson is a retail company specializing in men’s hats. Its budget director prepared the list of...
Benson 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. July August September Salary expense $ 17,500 $ 17,500 $ 17,500 Sales commissions (4 percent of sales) 3,500 3,500 3,500 Supplies expense 280 310 340...
Ruddy is a retail company specializing in men’s hats. Its budget director prepared the list of...
Ruddy 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. July August September   Salary expense $ 17,600 $ 17,600 $ 17,600   Sales commissions (4 percent of sales) 3,700 3,700 3,700   Supplies expense 310 340 370...
Ruddy is a retail company specializing in men’s hats. Its budget director prepared the list of...
Ruddy 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. July August September   Salary expense $ 18,700 $ 18,700 $ 18,700   Sales commissions (4 percent of sales) 1,800 1,800 1,800   Supplies expense 350 380 410...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September Budgeted sales $ 59,500 $ 75,500 $ 52,500 Budgeted cash payments for Direct materials 17,060 14,340 14,660 Direct labor 4,940 4,260 4,340 Factory overhead 21,100 17,700 18,100 Sales are 30% cash and 70% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances...
Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances...
Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 [The following information applies to the questions displayed below.] Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have...
The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative...
The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The company’s balance sheet as of June 30 is shown below: COLERAIN CORPORATION Balance Sheet June 30 Assets Cash $ 92,000 Accounts receivable 138,000 Inventory 64,000 Plant and equipment, net of depreciation 320,000 Total assets $ 614,000 Liabilities and Shareholders’ Equity Accounts payable $ 73,000 Common shares 420,000 Retained earnings 121,000 Total liabilities and shareholders’ equity $ 614,000 Colerain’s managers have...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 83,000 Accounts receivable 126,000 Inventory 69,750 Plant and equipment, net of depreciation 220,000 Total assets $ 498,750 Liabilities and Stockholders’ Equity Accounts payable $ 81,000 Common stock 348,000 Retained earnings 69,750 Total liabilities and stockholders’ equity $ 498,750 Exercise 8-12...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 85,000 Accounts receivable 141,000 Inventory 83,250 Plant and equipment, net of depreciation 226,000 Total assets $ 535,250 Liabilities and Stockholders’ Equity Accounts payable $ 87,000 Common stock 350,000 Retained earnings 98,250 Total liabilities and stockholders’ equity $ 535,250 Exercise 8-12...