Chapter 3, Problem 3.1E

Types of Events

For each of the following events, identify whether it is an external event that would be recorded as a transaction (E), an internal event that would be recorded as a transaction (I), or not recorded (NR).

________________ 1. A vendor for a company’s supplies is paid an amount owed on account.

________________ 2. A customer pays its open account.

________________ 3. A new chief executive officer is hired.

________________ 4. The biweekly payroll is paid.

________________ 5. Depreciation on equipment is recognized.

________________ 6. A new advertising agency is hired to develop a series of newspaper ads for the company.

________________ 7. The advertising bill for the first month is paid.

________________ 8. The accountant determines the federal income taxes owed based on the income for the period.