3. You reserved 104 hotels rooms for four nights (100 rooms for the registered participants and 4 rooms for the people you hired to work at the conference). The total cost of the rooms was $40,000. You paid a 20% deposit in cash (i.e., certified check) upon reserving the rooms in November. The balance is due at the end of the conference, at which time you will provide that payment with a second certified check. a. When should the expense for the hotel rooms be recorded on your organization’s income statement? b. What is the effect on the financial statements (balance sheet and income statement) in November? In February?

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a The expense for the hotel rooms should be recorded on your organizations income statem... View the full answer