For each of the following scenarios determine how and when you would recognize the related expenses.

a) You have been producing widgets during the year and placing them in inventory for resale. When would you recognize the costs of producing these widgets as an expense on the income statement?

b) You payed for a one-year $100,000 general liability insurance policy for your firm on 6/1/18 and are preparing an income statement for the calendar year ended 12/31/18.

c) You purchased some office equipment at the beginning of the year for $10,000. You expect it to have a 10-year useful life with no salvage value. You are preparing your year-end financial statements.

d) You purchased some production equipment used to build products for resale at the beginning of the year for $10,000. You expect it to have a 10-year useful life with no salvage value. You are preparing your year-end financial statements.