January budgeted selling and administrative expenses for the retail shoe store t

Question

January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, 2018, are as follows: sales commissions, $29,000; rent, $11,000; utilities, $4,800: depreciation, $3,100; and miscellaneous, $1,300. Utilities are paid in the month after incurrence. Other expenses are expected to be paid in cash in the month in which they are incurred Required a. Determine the amount of budgeted cash payments for January selling and administrative expenses. b. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet c. Determine the amount of depreciation expense the store will report on the income statement for the year 2018, assuming that monthly depreciation remains the same for the entire year a Budgeted cash payments b. Utilities payable c. Depreciation expense

Explanation / Answer

Req 1. Budgeted Cash payment for Jan Selling and Admin Expenses: Jan $ Sales commission 29000 Rent expenses 11000 Misc expenses 1300 Budgeted Cash payment for Jan Selling Admin OH 41300 Req 2. Utilities payable reported on Jan31 is $ 4800. Req 3. Depreciation expense reported in Income statement of 2018 is $ 37200

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.