On April 2, the salaried employees of LaSalle Company receive their paychecks representing 8 workdays in March and 2 days in April for a total gross pay of $15,000. Other expenditures paid in April include advertising from March of $500 and property taxes for the first quarter of the year of $5,700. Property taxes for the second quarter are also expected to be $5,700. The company's vehicle was repaired on April 1 for an amount of $460 to be paid May 1. What are the expenses for April under the cash accounting method and what would they be under accrual basis accounting?
A) $21,200 under both cash and accrual basis
B) $21,200 under cash basis and $5,360 under accrual basis accounting
C) $15,000 under the cash basis; $6,660 under the accrual basis
D) $12,000 under the cash basis; $12,460 under accrual basis
Correct Answer:
Verified
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