Question

acc 340 Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2017, included the following expense accounts: Accounting and legal fees $420,000 Advertising 360,000 Freight-out 225,000 Interest 180,000 Loss on sale of long-term investments 90,000 Officers' salaries 540,000 Rent for office space 540,000 Sales salaries and commissions 405,000 One-half of the rented premises is occupied by the sales department. How much of the expenses listed above should be included in Perry's general and administrative expenses for 2017

Answer 1

Answer:

$1,230,000

Explanation:

The computation of the amount included in the general and admin expense is shown below:

= Accounting and legal fees + Officer salaries + Half of rent

= $420,000 + $540,000 + (540,000 ÷ 2)

= $1,230,000

We simply added the accounting & legal fees, officer salaries and half rent so that the amount involved in general and admin expense could come