Chapter 3, Problem 3.10ME

Identifying Accrual Basis Expenses

The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. If an expense is to be recognized in February, indicate the amount. If an expense is not to be recognized in February, explain why.

Activity	Amount or Explanation
a. Swing Hard paid $4,750 to its golf instructors for the month of February.
b. Swing Hard paid $1,750 for electricity used in the month of January.
c. Swing Hard received an electricity bill for $800 for the month of February, to be paid in March.