2. During an audit of year 2020, the auditors discovered that expenses related to utilities were paidon cash basis. Cash payments during 2020 for utilities totaled $40,000. Some of these expenses,namely, $3,000, had invoices dated in December of 2019. Also, expenses incurred in Decemberof 2020, totaling $2,500, were not paid during 2020 and not included in 2020 expenses.Therefore, accrued expenses at December 31, 2019 and December 31,2020 were determined asfollows12/31/201912/31/2020Utilities3,000 $ 2,500Make the adjusting entry based upon full accrual.

A journal entry is a form of accounting entry that is used to report a business transaction in a…

During an audit of year 2020, the auditors discovered that expenses related to utilities were pa on cash basis. Cash payments during 2020 for utilities totaled $40,000. Some of these expense namely, $3,000, had invoices dated in December of 2019. Also, expenses incurred in Decemb of 2020, totaling $2,500, were not paid during 2020 and not included in 2020 expenses. Therefore, accrued expenses at December 31, 2019 and December 31,2020 were determined a follows 12/31/2019 12/31/2020 Utilities 3,000 $ 2,500 Make the adjusting entry based upon full accrual.

During an audit of year 2020, the auditors discovered that expenses related to utilities were pa on cash basis. Cash payments during 2020 for utilities totaled $40,000. Some of these expense namely, $3,000, had invoices dated in December of 2019. Also, expenses incurred in Decemb of 2020, totaling $2,500, were not paid during 2020 and not included in 2020 expenses. Therefore, accrued expenses at December 31, 2019 and December 31,2020 were determined a follows 12/31/2019 12/31/2020 Utilities 3,000 $ 2,500 Make the adjusting entry based upon full accrual.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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