The following information is taken from the accrual

accounting records #2289

The following information is taken from the accrual accounting records of Kroger Sales
Company:a. During January, Kroger paid $9,150 for supplies to be used in sales to customers
during the next two months (February and March). The supplies will be used evenly over the
next two months.b. Kroger pays its employees at the end of each month for salaries earned
during that month. Salaries paid at the end of February and March amounted to $4,925 and
$5,100, respectively. c. Kroger placed an advertisement in the local newspaper during March at
a cost of $850. The ad promoted the pre-spring sale during the last week in March. Kroger did
not pay for the newspaper ad until mid-April.Required:1. Under cash-basis accounting, how
much expense should Kroger report for February and March?2. Under accrual-basis
accounting, how much expense should Kroger report for February and March?3. Which basis of
accounting provides the most useful information for decision-makers? Why?View Solution:
The following information is taken from the accrual accounting records

ANSWER
http://paperinstant.com/downloads/the-following-information-is-taken-from-the-accrual-
accounting-records/

1/1
Powered by TCPDF (www.tcpdf.org)