Provide journal entries for the facts for both the modified accrual accounting basis and the accrual accounting basis. a.) Total amount of Expenditures that would br recognized: Item Salaries Paid in Cash Accrued Salaries Accrued Utility bill Purchase of Equipment Payment of principle Payment of Interest TOTAL Expenditures 3,000,000.00 20,000.00 include 10,000.00 include 200,000.00 include 100,000.00 include 40,000.00 3,370,000.00 b.) Total amount of expenses that would be recognized: Salaries Paid in Cash 3,000,000.00 Accrued Salaries Accrued Utility bill Purchase of Equipment/ Depreciation Payment of priniciple Payment of Interest TOTAL 20,000.00 10,000.00 20,000.00 40,000.00 3,090,000.00
Provide journal entries for the facts for both the modified accrual accounting basis and the accrual accounting basis. a.) Total amount of Expenditures that would br recognized: Item Salaries Paid in Cash Accrued Salaries Accrued Utility bill Purchase of Equipment Payment of principle Payment of Interest TOTAL Expenditures 3,000,000.00 20,000.00 include 10,000.00 include 200,000.00 include 100,000.00 include 40,000.00 3,370,000.00 b.) Total amount of expenses that would be recognized: Salaries Paid in Cash 3,000,000.00 Accrued Salaries Accrued Utility bill Purchase of Equipment/ Depreciation Payment of priniciple Payment of Interest TOTAL 20,000.00 10,000.00 20,000.00 40,000.00 3,090,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Provide journal entries for the facts for both the
modified accrual accounting basis and the accrual accounting basis.
a.) Total amount of Expenditures that would br recognized:
Item
Salaries Paid in Cash
Accrued Salaries
Accrued Utility bill
Purchase of Equipment
Payment of principle
Payment of Interest
TOTAL
Expenditures
3,000,000.00
20,000.00 include
10,000.00 include
200,000.00 include
100,000.00 include
40,000.00
3,370,000.00
b.) Total amount of expenses that would be recognized:
Salaries Paid in Cash
3,000,000.00
Accrued Salaries
Accrued Utility bill
Purchase of Equipment/ Depreciation
Payment of priniciple
Payment of Interest
TOTAL
20,000.00
10,000.00
20,000.00
40,000.00
3,090,000.00
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