Cash-basis accounting and accrual-basis accounting

Assignment Help Financial Accounting

Reference no: EM131261482

The following information is taken from the accrual accounting records of Kroger Sales Company:

During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (February and March). The supplies will be used evenly over the next 2 months.

Kroger pays its employees at the end of each month for salaries earned during that month. Salaries paid at the end of February and March amounted to $4,725 and $4,800, respectively.

Kroger placed an advertisement in the local newspaper during March at a cost of $870. The ad promoted the pre-spring sale during the last week in March. Kroger did not pay for the newspaper ad until mid-April.

Required:

1. Under cash-basis accounting, how much expense should Kroger report for February and March?

February $

March $

2. Under accrual-basis accounting, how much expense should Kroger report for February and March?

February $

March $

Reference no: EM131261482

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