i need help this this homework problem that has to do with cash-basis and accurural basis accounting ornerstone Exercise 3-16 (Algorithmic)Expenses and the Matching ConceptThe following information describes transactions for Morgenstern Advertising Company during July:On July 5, Morgenstern purchased and received $24,300 of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $23,630 cash to Drexel and used $7,450 of the supplies.Morgenstern paid $13,780 to salespeople for salaries earned during July. An additional $1,510 was owed to salespeople at July 31 for salaries earned during the month.Morgenstern paid $2,950 to the local utility company for electric service. Electric service in July was $2,300 of the $2,950 total bill.Required:1. Calculate the amount of expense recognized in July under cash-basis accounting.$2. Calculate the amount of expense recognized in July under accrual-basis accounting.$

Name: i need help this this homework problem that has to do with cash-basis
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: i need help this this homework problem that has to do with cash-basis and accurural basis accounting ornerstone Exercise 3-16 (Algorithmic)Expenses and the Matching ConceptThe following information describes transactions for Morgenstern Advertising

Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Answered: The following information describes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

i need help this this homework problem that has to do with cash-basis and accurural basis accounting

ornerstone Exercise 3-16 (Algorithmic)
Expenses and the Matching Concept

The following information describes transactions for Morgenstern Advertising Company during July:

On July 5, Morgenstern purchased and received $24,300 of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $23,630 cash to Drexel and used $7,450 of the supplies.
Morgenstern paid $13,780 to salespeople for salaries earned during July. An additional $1,510 was owed to salespeople at July 31 for salaries earned during the month.
Morgenstern paid $2,950 to the local utility company for electric service. Electric service in July was $2,300 of the $2,950 total bill.

Required:

1. Calculate the amount of expense recognized in July under cash-basis accounting.
$

2. Calculate the amount of expense recognized in July under accrual-basis accounting.
$

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions