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Question - On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies in order to complete a project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year.
1. Should you write the check today and record the expense or write the check tomorrow?
2. How would the company be affected if the check is written and the invoice ends up being erroneous?
Glassman Corporation constructed a warehouse to handle storing materials for its products. Construction began on May 2014 and will likely be completed.
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What conclusions concerning the management of the inventory can be drawn from these data?
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