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Question - Accrued Expenses On January 13, 2018 Astra Ltd is preparing to close its financial statements for the year 2017.
At that date is has calculated the following accruals for 2017:
Electricity for December 2017 $2,000
Water for December $650
Audit fees for the year 2017 $5,500
On March 13 2018, it has paid the above expenses in full, however audit fees actually paid were $5,000 since the auditors decided to give a discount to the company.
Required - Prepare the journal entries for 2017 and 2018 taking into account the above.
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