Reference no: EM131866253

Recording & Reporting Financial Information

You accrued the expense in #1- so the debit is to Wages payable not expense.

The purchase of a CAT scan is an addition to equipment in PPE and an asset. It would not be expensed immediately upon purchase. It has not been used yet. See matching principle. You correctly recorded it as an asset even though you used an expense account.

Medical supplies are placed into inventory and are an asset until used.

The debit is correct except that medical supply expense is an expense not a liability- expenses are recorded in the Income Statement. The credit is incorrect. You have to reduce the Inventory account - note I did not say they were paid for- that they were used.

Supplies are not expensed until they are used. They are placed into inventory and that is the dr. the credit is to accounts payable to set up the liability.

There is no account on the chart of accounts for Utilities payable- it would be credited to Accounts payable.

The expense was accrued last month- so the dr would be to reduce the liability Accounts payable.

Benefits payable is a liability on the Balance sheet not an expense.

The credit would be to relieve the inventory account.

There is no account on the chart of accounts called Donations Received- please reference chart of accounts. Net assets are on the balance sheet- remember your equation A=L+NA.

Vida-s till some issues with Liabilities and expense recognition. Please review the chapters.