Company A used $3,000 worth of office supplies this year but the costs were not paid for
Question:
Company A used $3,000 worth of office supplies this year but the costs were not paid for until next year. Which of the following is not a result of this transaction?
An expense of $3,000 is recorded on this year's income statement
There is a $3,000 credit in cash on the balance sheet
An accrued expense of $3,000 is recorded as current liabilities on the balance sheet
There is a $3,000 credit in office supplies on the balance sheet
Company B purchased an equipment for $600. The equipment has a useful life of 4 years and a scrap value of $50 at the end of year 4. What is the depreciation expense for year 1 (using straight line method)?
$137.5
$150.0
$50.0
$122.5
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry