Question
Kroger Stores uses the accrual basis of accounting and recognizes revenue at the time it sells goods or renders services. Indicate the amount of expense
Kroger Stores uses the accrual basis of accounting and recognizes revenue at the time it sells goods or renders services. Indicate the amount of expense recognized during October (if any) from each of the following transactions or events: a. Pays $4,670 on October 5 for advertisements that appeared in local newspapers in September b. Pays $12,000 on October 6 for refrigerators delivered to its stores on September 30. The firm expects their refrigerators to last for five years and have no salvage value. c. Pays $24,000 on October 10 for property taxes for October 1 of this year to September 30 of next year d. Pays $12,900 on October 15 for cleaning supplies purchased on October 10. Cleaning supplies on hand on October 1 cost $2,900 and cost $3,500 on October 31. e. Pays $1,200 on October 20 for repairs done to a forklift truck on October 1. The truck had a remaining useful life of five years on October 1. f. Pays $10,000 on October 25 as a deposit on land Kroger plans to purchase for a new store g. Pays $20,000 on October 31 as rent on the warehouse for October and November
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