Question: An entity is converting its accrual-based accounting records to a cash basis. The amount of $53 000 (including $7000 depreciation) was shown as 'Other expenses'
An entity is converting its accrual-based accounting records to a cash basis. The amount of $53 000 (including $7000 depreciation) was shown as 'Other expenses' in the income statement. On inspection of the balance sheet, you find that the beginning and closing balances for 'Prepaid expenses' were $13 000 and $15 000 respectively. Also, the beginning and closing balances of 'Accrued expenses' were $5000 and $11 000 respectively. What is the actual amount of cash paid for other expenses during the period?
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