Reference no: EM13259338
The local chapter of Helping Hands, a social service organization, had the following economic events occur during the month of May:
1. A lunche on honoring volunteers was held at a cost of 950. By month end the bill hadn't been received orpaid.
2. New letterhead and envelopes were printed at a cost of625 and paid for. The new items will not be used, however,until the old supply is exhausted sometime in June.
3. The executive director was paid her usual salary of3,800 during May.
4. Prizes, ribbons, and awards for events upcoming in Julywere delivered by the supplier, who charged 10,175. The amountwas paid in cash.
5. The electric bill for April totaled 163 and was paid infull.
6. Radio, TV, and newspaper advertising related to aspecial fund-raising campaign ran during May. The 7,550 costhad been paid in April.
Helping Hands uses an accrual basis accounting. For which of the events above should an expense be recorded in May? Ineach case, how much expense should be recorded? If an eventdoes not involve an expense, specify why not.
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