Malcolm is a retail company specializing in men\'s hats. It\'s budget director p

Question

Malcolm is a retail company specializing in men's hats. It's 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 Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total S&A; expenses before interest $12,000 $12,000 $12,000 1,000 180 550 1,500 3,300 345 195 100 210 1,000 550 1,500 3,300 345 $18,875 $18,890 $18,905 550 1,500 3,300 345 Required Determine the amount of utilities payable as of September 30 Determine the amount of sales commissions payable as of September 30. b. c.

Explanation / Answer

Schedule of cash payments July August September Salary expense 12000 12000 12000 Sales commissions 0 1000 1000 Supplies expense 180 195 210 Utilities 0 550 550 Rent 3300 3300 3300 Miscellaneous 345 345 345 Total cash paid 15825 17390 17405 b Amount of utilities payable at September 30 = $550 c Amount of sales commission payable at September 30 = $1000

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