Harbour House Interiors has two departments: Paint and Wallpaper. Harbor House completed the transactions below.

Instructions:

Use a form similar to the one below. For each transaction, indicate:

a. Whether the expense is a direct expense (identifiable with a specific department) or an indirect expense.

b. The title of the expense account.

The first transaction is completed as an example.

Transcribed Image Text:

Trans. No. 1 Direct Expense or Indirect Expense Indirect 1. Paid cash for utilities bill. Expense Account Title Utilities Expense 2. Paid cash for new accounting software for the company. 3. Paid cash for an instructor to conduct classes on wallpapering to encourage customers to enter the store. 4. Paid cash to a courier to deliver paint to a construction site. 5. Paid cash to rent a hall for the annual employee party. 6. Paid cash for bimonthly payroll for all administrative, paint, and wallpaper employees. Salesclerks are hired by specific department managers. 7. Donated paint and wallpaper to a group sponsoring a youth center. 8. Paid for advertising in the newspaper in a special home decorating supplement. 9. Paid monthly federal income tax expense. 10. Paid cash for monthly payroll taxes (consider the taxes on the Wallpaper Department employees only).