Question: As the controller of Brumley Consulting you have hired a
As the controller of Brumley Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, “We will pay the salaries soon. Why not wait until payment to record the expense? In the end, the result will be the same.” Write a reply to explain to the employee why the adjusting entry is needed for accrued salary expense.
Answer to relevant QuestionsA large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 827 vehicles. Write a short paragraph to ...Bowden Golf Co. prepaid three years’ rent ($36,000) on January 1, 2014. At December 31, 2014, Bowden prepared a trial balance and then made the necessary adjusting entry at the end of the year. Bowden adjusts its accounts ...Wolfe Nurseries, Inc., experienced four situations for its supplies. Compute the amounts that have been left blank for each situation. For situations 1 and 2, journalize the needed transaction. Consider each ...New York Sales, Inc., experienced four situations for its supplies. Compute the amounts that have been left blank for each situation. For situations 1 and 2, journalize the needed transaction. Consider each ...Consider the unadjusted trial balance of WOW, Inc., at July 31, 2014, and the related month-end adjustment data.Adjustment data at July 31, 2014:a. Accrued service revenue at July 31, $3,950.b. Prepaid rent expired during ...
Post your question