Business, 15.04.2020 02:46 gervasio229
Dobson Company expects to begin operating on January 1. The company’s master budget contained the following operating expense budget.
January
February
March
Salary expense
$ 40,000
$ 36,000
$ 36,000
Sales commissions, 5% of sales
24,000
30,000
28,000
Utilities
2,800
2,800
2,800
Depreciation on store equipment
1,800
1,800
1,800
Rent
7,200
7,200
7,200
Miscellaneous
1,800
1,800
1,8900
Total operating expenses
$ 77,600
$ 79,600
$ 77,600
Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of accumulated depreciation appearing on the company's March 31 pro forma balance sheet is:
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Dobson Company expects to begin operating on January 1. The company’s master budget contained the fo...
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