Indicate which of the following events would result in recognizing
Indicate which of the following events would result in recognizing expenses for the year in which the described event takes place; give the journal entry. (Take the company’s point of view.)
1. Bright Shirts, Inc., sold 1,500 T-shirts to the FSU Bookstore for $16,500 cash. Bright originally paid $4,500 for the shirts.
2. Home Industries, Inc., received a utility bill for the last month of the year in the amount of $575 but won’t actually pay it until next year.
3. Waterline, Inc., paid $8,600 for a two-year insurance policy—for the current year and for next year.

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