a. Chipotle has monthly wages expense of $7,200 that has been incurred but not paid as of December 31. b. United Airlines purchases a 24-month insurance policy for $108,000 on December 1 for immediate coverage. c. On December 15, Pfizer prepays $60,000 for hotel rooms for its January sales meeting. Situations a. Wages expense incurred but not paid b. Purchases a 24-month insurance policy c. Prepays for hotel rooms for its annual sales meeting Expense recognized in December :7200 $ 108,000 $ 60,000

a. Chipotle has monthly wages expense of $7,200 that has been incurred but not paid as of December 31. b. United Airlines purchases a 24 -month insurance policy for $108,000 on December 1 for immediate coverge. c. On December 15, Pfizer prepays $60,000 for hotel rooms for its January sales meeting