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: 2. McGraw-Hill Education uses $2,769 worth of electricity and naturel gas in its headquarters building for which it has not yet been billed. b. At the beginning of Jonuary, Turner Construction Company pays $954 for magazine advertising to run in monthly publications each of the first three months of the year. c.Dell pays its computer service techniciens $399,500 in salaries for the two weeks ended January 7. Answer from Dell's standpoint. d. The University of Floride orders 63.000 football tickets from its printer and pays $7,780 in sovence for the custom printing. The first game will be played in September. Answer from the university's standpoint. e. The campus bookstore receives 640 sccounting texts at a cost of $97 each. The terms indicate that payment is due within 30 days of delivery f. During the last week of January, the compus bookstore sold 580 accounting texts received in (e) at a sales price of $130 each. 9. Fucillo Automotive Group pays its salespersons $14.900 in commissions related to December automobile sales. Answer from Fucillo's standpoint. h. On January 31. Fucillo Automotive Group determines thet it will pay its selespersons $52,380 in commissions related to January sales. The payment will be made in early February. Answer from Fucillo's standpoint. i. A new grill is received and installed at a Wendy's restaurant at the end of the day on January 31: - $14.450 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 $6,000 in storage. An additional $3,100 worth of supplies was purchased during January. At the end of January $1.550 worth of jonitorial supplies remained in storage. k. An lowo 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. 1. Weng Compony paid $3.000 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 $620 and charges the amount on account. n. Hess Company form equipment company, receives its phone bill at the end of January for $222 for January Colls. The bill hes not been paid to date. o. Martin Company receives and pays in January $1.295 invoice (bill) from a consulting firm for services received in January Answer from Martin's standpoint. p. Perillo's Taxi Company Pays - 5645 invoice from a consulting firm for services received and recorded in December. 9. PVH Corp., manufacturer of IZOD, ARROW. Von Heusen Calvin Klein, and Tommy Hilfiger apparel among other brands, completes production of 2,000 men's shirts ordered by Macy's department stores at a cost of $20 esch and delivers the order in Jonuery. Answer from PVH Corp.'s standpoint. Required: For esch of the transactions, if an expense is to be recognized in January, indicate the expense account title and the amount. (If expense is not recognized choose "None") Expense Account Affected Amount of Expense Incurred in January S 2,769 S 316 S 199,750 S 0 C. 0 S S S 75,400 0 52,380 0 a. Utilities expense b. Advertising expense Salaries expense d. None None f. Cost of goods sold 9. None h. Commission expense i. None j. Supplies expense Wages expense Insurance expense m. Repairs expense n. Utilities expense Consulting expense None 9. Cost of goods sold S S S S S 7,550 166 250 620 222 1.295 0 40.000 S S . S S
