Fill in the blanks:

1. Accrual accounting revenue and expenses are recognized in the ________ period work is done. The related cash flows may happen in another period. In other words, the revenue or expense event is recognized _________ it happens even if there is no cash flow for it.

2. Consequently, revenue, expenses and the cash flows related to them are recognized in the same ________ period they occurred. Revenue, expenses and the related cash flows all show up on the end of the period financial statements for that period.

Fill in the blanks:

SECOND ACCOUNTING CYCLE (2019)

1. Daijah Consultants pays $8000 to the instructor to settle the salaries payable obligation. A cash flow is recorded. __________________ transaction

2. Daijah purchases $600 of supplies on account (no cash paid at this time) __________________ transaction

3. Daijah is paid up front $15,000 as partial payment for the $42,000 contract signed in 2018. The work is due to start later in 2019.

4. On April 1st, 2019 Daijah expands, renting office space by paying $12,000 cash for a one years rent. __________________ transaction

5. Daijah pays $3000 cash for two advertisements that will appear in 2020. __________________ transaction

6. Daijah pays out a $3000 cash dividend to investors

7. Daijah common stock, acquiring $5000 cash.

8. **Adjusting Event** Daijah completes the $42,000 work that was contracted in 2018. The customer is billed for the remaining $27,000. Revenue is recorded.

9. **Adjusting Event** After determining through a physical count that it has $250 in unused supplies remaining as of December 31, 2019, Daijah recognizes a supplies Expense. __________________ transaction

10. **Adjusting Event** Daijah recognizes an Expense for 9-months of rent used up, so far.

2019 accounting cycle ends Dec. 31st, 2019.

Note: Events 2, 3, 4 and 5 were new types of events. These are called deferrals.