In the space below,state whether each situation is a deferral or an accrual.
______
a.
Depreciation on machinery is $7,200 for the accounting period.
______
b.
Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______
c.
Office supplies of $965 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $640. At the end of the period, $120 in office supplies remained.
______
d.
Commissions amounting to $975 were earned but not yet collected by year end.
______
e.
Prepaid Rent had a $2,500 balance prior to adjustment. By year end, 50 percent had expired.
______
______ f. Federal income taxes for the year were estimated to be $4,680.

Question

Quizplus · Accepted Answer

The Answer of In the space below,state whether each situation is a deferral or an accrual.
______
a.
Depreciation on machinery is $7,200 for the accounting period.
______
b.
Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______
c.
Office supplies of $965 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $640. At the end of the period, $120 in office supplies remained.
______
d.
Commissions amounting to $975 were earned but not yet collected by year end.
______
e.
Prepaid Rent had a $2,500 balance prior to adjustment. By year end, 50 percent had expired.
______
______ f. Federal income taxes for the year were estimated to be $4,680.

In the Space Below,state Whether Each Situation Is a Deferral