Reference no: EM13877177

Under accrual basis accounting, expenses are recognized when incurred, which means the activity giving rise to the expense has occurred. Assume the following transactions occurred in January:

a. Dell paid its computer service technicians $ 90,000 in salary for work done in January. Answer from Dell's standpoint.

b. At the beginning of January, Turner Construction Company paid $ 3,000 in rent for February- April.

c. McGraw- Hill Education publisher of this text book used $ 3,000 worth of electricity and natural gas in January for which it has not yet been billed.

d. Pooler Company received and paid in January a $ 1,500 invoice from a consulting firm for services received in January.

e. The campus bookstore received consulting services at a cost of $ 5,000. The terms indicate that payment is due within 30 days of the consultation.

f. Schergevitch Incorporated had its delivery van repaired in January for $ 280 and charged the amount on account.

Required:

For each of the transactions, if an expense is to be recognized in January, indicate the amount. If an expense is not to be recognized in January, indicate why.