E$3-3($Algo$)$ Identifying Expenses LO$3-2,3-3$

Revenues are normally recognized when a company transfers promised goods or services to customers in the amount the company expects to be entitled to receive. Expense recognition is guided by an attempt to match the costs associated with the generation of those revenues to the same time period. Assume that the following transactions occurred in January:

a$.$ McGraw$-$Hill Education uses $$2,762$ worth of electricity and natural gas in its headquarters building for which it has not yet been billed.

b$.$ At the beginning of January, Turner Construction Company pays $$945$ for magazine advertising to run in monthly publications each of the first three months of the year.

c$.$ Dell pays its computer service technicians $$385,500$ in salaries for the two weeks ended January $7.$ Answer from Dell's standpoint.

d$.$ Iowa State University orders $67,000$ footbal tickets from its printer and prepays $$7,640$ in advance for the custom printing. The first game will be played in September. Answer from the university's standpoint.

e$.$ The campus bookstore receives $650$ accounting texts at a cost of $$96$ each. The terms indicate that payment is due within $30$ days of delivery.

f$.$ During the last week of January, the campus bookstore sold $570$ accounting texts received in $($e$)$ at a sales price of $$120$ each.

g$.$ Fucillo Automotive Group pays its salespersons $$13,800$ in commissions related to December automobile sales. Answer from Fucillo's standpoint.

h$.$ On January $31,$ Fucillo Automotive Group determines that it will pay its salespersons $$58,150$ in commissions related to January sales. The payment will be made in early February. Answer from Fucillo's standpoint.

A new grill is received and installed at a Wendy's restaurant at the end of the day on January $31$;$a$$$14,250$ cash payment is made on that day to the grill supply company. Answer from Wendy's standpoint.

j$.$ Mall of America $($in Bloomington, MN$)$ had janitorial supplies costing $$5,400$ in storage. An additional $$3,400$ worth of supplies was purchased during January. At the end of January, $$1,500$ worth of janitorial supplies remained in storage.

k$.$ An Emory State University employee works eight hours, at $$21$ per hour, on January $31$; however, payday is not until February $3.$ Answer from the university's point of view.

Wang Company paid $$3,300$ for a fire insurance policy on January $1.$ The policy covers $12$ months beginning on January $1.$ Answer from Wang's point of view.

m$.$ Derek Incorporated has its delivery van repaired in January for $$640$ and charges the amount on account.

n$.$ Hass Company, a farm equipment company, receives its phone bill at the end of January for $$272$ for January calls. The bill has not been paid to date.

Martin Company receives and pays in January a $$1,295$ invoice $($bill$)$ from a consulting firm for services received in January. Answer from Martin's standpoint.

p$.$ Parillo's Taxi Company pays a $$665$ invoice from a consulting firm for services received and recorded in December.

q$.$ PVH Corporation, manufacturer of IZOD, ARROW, Van Heusen, Calvin Klein, and Tommy Hilfiger apparel among other brands, completes production of $1,900$ men's shirts ordered by Macy's department stores at a cost of $$70$ each and delivers the order in January. Answer from PVH Corporation's standpoint.

Required:

For each of the transactions, if an expense is to be recognized in January, indicate the expense account title and the amount.

Note: If expense is not recognized choose "None".