ANSWERS TO QUESTIONS

Under the accrual basis of accounting, revenue is recognized when it is earned and expenses are recognized when incurred, without regard to the time of the receipt or payment of cash. ... ($6,000 X 3/5) Jan. 2 Salaries Payable 3,600 Salaries Expense 2,400 Cash 6,000 BRIEF EXERCISE 3-8. Dec. 31 Interest Receivable 300 Interest Revenue 300 Feb. 1 ... ................
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