The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. If an expense is to be recognized in February, indicate the amount. (Enter zero for any transactions that have a net effect of zero on the income statement.) a. Swing Hard paid $5, 600 to its golf instructors for the month of February. b. Swing Hard paid $2, 650 for electricity used in the month of January. c. Swing Hard received an electricity bill for $1, 640 for the month of February, to be paid in March.
Expert Answer
The correct answer is :
Amount ($) | |
a. | 5,600.00 |
b. | – |
c. | 1,640.00 |
Note :
Reason | |
a. | Since the amount has accrued and paid in the Month of February the same is to be recorded |
b. | Since the amount has accrued in the Month of January the same is not to be recorded |
c. | Since the amount has accrued in the Month of February the same is to be recorded |