: SET A
PA Consider the following transactions.
Transaction
Accrualbasis
Revenue
Expense
Receive cash from customers in advance of services to be provided, $
Pay utilities bill for the previous period, $
Pay for insurance in advance of the period to be covered, $
Pay workers' salaries for the current period, $
Incur costs for employee salaries in the current period but do not pay, $
Receive cash from customers at the time of service, $
Purchase office supplies on account, $
Borrow cash from the bank, $
Receive cash from customers for services performed in the previous period, $
Pay for advertising to appear in the current period, $
Cashbasis
Revenue Expense
Required:
For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrualbasis accounting and under cashbasis accounting in the current period.
