Provide journal entries for the facts for both the modified accrual accounting basis and the accrual accounting basis. CLEARLY LABEL WHICH ENTRIES REPRESENT MODIFIED ACCRUAL ACCOUNTING AND WHICH ENTRIES REPRESENT ACCRUAL ACCOUNTING.Salaries paid in cash during $2021$Salaries applicable to $2021,$ due to be paid January $5,2022.$$$3,000,000$Utility bill applicable to $2021,$ due to be paid January $10,2022$$20,000$Equipment acquired at the beginning of $2021$ and having an estimated useful lifeof $10$ years$10,000$Payment of principal on long$-$term debt on December $31,2021$$200,000$Payment of interest on long$-$term debt on December $31,2021$$100,000$$40,000$

 

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P2-48. (Difference between expenditures and expenses) Based on the information shown below, calculate for the year ended December 31, 2021, (a) the total amount of expenditures that would be recognized when using the current financial resources measure- ment focus and modified accrual basis of accounting, and (b) the total amount of expenses that would be recognized using the economic resources measurement focus and accrual basis of accounting. Chapter 2 The Use of Funds in Governmental Accounting Cambridge Business Publishers Salaries paid in cash during 2021 Salaries applicable to 2021, due to be paid January 5, 2022. Utility bill applicable to 2021, due to be paid January 10, 2022. Equipment acquired at the beginning of 2021 and having an estimated useful life of 10 years Payment of principal on long-term debt on December 31, 2021 Payment of interest on long-term debt on December 31, 2021 $3,000,000 20,000 10,000 200,000 100,000 40,000 P2-48. (Difference between expenditures and expenses) Based on the information shown below, calculate for the year ended December 31, 2021, (a) the total amount of expenditures that would be recognized when using the current financial resources measure- ment focus and modified accrual basis of accounting, and (b) the total amount of expenses that would be recognized using the economic resources measurement focus and accrual basis of accounting. Chapter 2 The Use of Funds in Governmental Accounting Cambridge Business Publishers Salaries paid in cash during 2021 Salaries applicable to 2021, due to be paid January 5, 2022. Utility bill applicable to 2021, due to be paid January 10, 2022. Equipment acquired at the beginning of 2021 and having an estimated useful life of 10 years Payment of principal on long-term debt on December 31, 2021 Payment of interest on long-term debt on December 31, 2021 $3,000,000 20,000 10,000 200,000 100,000 40,000