Motor Repair Shop uses the accrual basis of accounting, and had the following account balances on its financial statements at December 31, 2014:
On January 1, the Utilities Payable Account had a zero balance. Motor Repair paid cash for utilities totaling $45,000 during 2014. How much should Motor Repair report as utilities expense as of December 31, 2014?

Question

Motor Repair Shop uses the accrual basis of accounting, and had the following account balances on its financial statements at December 31, 2014:
  On January 1, the Utilities Payable Account had a zero balance. Motor Repair paid cash for utilities totaling $45,000 during 2014. How much should Motor Repair report as utilities expense as of December 31, 2014?

Quizplus · Accepted Answer

The Answer of Motor Repair Shop uses the accrual basis of accounting, and had the following account balances on its financial statements at December 31, 2014:
  On January 1, the Utilities Payable Account had a zero balance. Motor Repair paid cash for utilities totaling $45,000 during 2014. How much should Motor Repair report as utilities expense as of December 31, 2014?

Motor Repair Shop Uses the Accrual Basis of Accounting, and Had