A listing of budgeted selling and
administrative expenses for Glide Tire Company in P7-2 for the year ended
December 31, 2008, were as follows
P7-3 A listing of budgeted selling and administrative expenses for Glide Tire Company in P7-2 for the year ended December 31, 2008, were as follows:
Advertising expense 942,000
Office rent expense 125,000
Office salaries expense 821,000
Office supplies expense 45,500
Officers' salaries expense 661,000
Sales salaries expense 868,000
Telephone and fax expense 33,500
Travel expense 443,000
Required:
Prepare a selling and administrative expenses budget, in good form, for the year 2008.
Using the information above and
the budgets prepared in P7-2, prepare a budgeted income statement for the year
2008, assuming an income tax rate of 40%.
TUTORIAL PREVIEW
Problem 7-3
1.
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Glide Tire Company
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Selling and
Administrative Expenses Budget
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For the Year Ended
December 31, 2008
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Selling expenses:
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Advertising expense
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$
942,000
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Sales salaries expense
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868,000
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Travel expense
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443,000
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Total selling expenses
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$
2,253,000
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