You are the accountant at a small custom car company (Dream Cars). You just distributed the financial statements for September. After reviewing the reports, the new general manager (Danny Dreamer) asks you the following questions:

1. We bought several computers and some new conference room furniture last month. Why arent those costs showing up as expenses in our income statement?
2. We got a large ($100,000) deposit from a new customer on September 30^th. It looks like you forgot to include that in revenue. Would you please check on that?
3. Whats the difference between salaries payable on the balance sheet and salaries expense on the income statement? Theyre different numbers, and I dont get it.
4. The balance sheet shows some prepaid expenses. I thought all expenses show up in the income statement. Would you please explain this to me?