Expense Recognition and AccrualAccounting The local chapter of Helping Hands, a

Question

Expense Recognition and AccrualAccounting The local chapter of Helping Hands, a socialservice organization, had the following economic events occurduring the month of May:

1. A luncheon honoring volunteers was held at a cost of $950. Bymonth end the bill hadn’t been received or paid.
2. New letterhead and envelopes were printed at a cost of $625 andpaid for. The new items will not be used, however, until the oldsupply is exhausted sometime in June.
3. The executive director was paid her usual salary of $3,800during May.
4. Prizes, ribbons, and rewards for events upcoming in July weredelivered by the supplier, who charged $10,175. The amount was paidin cash.
5. The electric bill for April totaled $163 and was paid infull.
6. Radio, TV, and newspaper advertising related to a specialfund-raising campaign ran during May. The 7,550 cost had been paidin April.

Expense Recognition and AccrualAccounting The local chapter of Helping Hands, a socialservice organization, had the following economic events occurduring the month of May:

Explanation / Answer

EconomicActivity Expense/ Revenue Recognition Luncheon forvounteers Expense will be recognised when the bill is received Cost of newletterheads & stationary Expense will be recognizes in June Executive directorssalary Expense will be recognized in May. Payment forupcoming events Expense will be recognized in July Payment of electricbill Expense will be recognized during May Advertsementbill Expense will be recognized during May

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