Assume that a firm uses the accrual basis of accounting.Indicate the amount of expense the firm recognizes during the month of November for each independent transaction.

a. Rent of $3,600 is paid on November 1 for the months November through January.
b. Inventory costing $2,500 is ordered on account. The invoice is received on November 25 and the goods are received on December 5.
c. Insurance premium of $900 is paid for a full year of coverage starting November 1.
d. On December 3, an invoice for November utilities of $325 is received.
e. On November 1, supplies costing $2,200 are purchased. At November 30, $500 of supplies remained on hand.

Question

Assume that a firm uses the accrual basis of accounting.Indicate the amount of expense the firm recognizes during the month of November for each independent transaction.

a. Rent of $3,600 is paid on November 1 for the months November through January.
b. Inventory costing $2,500 is ordered on account. The invoice is received on November 25 and the goods are received on December 5.
c. Insurance premium of $900 is paid for a full year of coverage starting November 1.
d. On December 3, an invoice for November utilities of $325 is received.
e. On November 1, supplies costing $2,200 are purchased. At November 30, $500 of supplies remained on hand.

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The Answer of Assume that a firm uses the accrual basis of accounting.Indicate the amount of expense the firm recognizes during the month of November for each independent transaction.

a. Rent of $3,600 is paid on November 1 for the months November through January.
b. Inventory costing $2,500 is ordered on account. The invoice is received on November 25 and the goods are received on December 5.
c. Insurance premium of $900 is paid for a full year of coverage starting November 1.
d. On December 3, an invoice for November utilities of $325 is received.
e. On November 1, supplies costing $2,200 are purchased. At November 30, $500 of supplies remained on hand.

Assume That a Firm Uses the Accrual Basis of Accounting