Expense Recognition and Accrual Accounting
The local chapter of Helping Hands, a social service organization, had the following economic events occur during the month of May:
A luncheon honoring volunteers was held at a cost of $950. By month end the bill hadn't been received or paid.
New letter head and envelopes were printed at a cost of $625 andpaid for. The new items will not be used, however, until the old supply is exhausted sometime in June.
The executive director was paid her usual salary of $3,800 during May.
Prizes, ribbons, and rewards for events upcoming in July were delivered by the supplier, who charged $10,175. The amount was paid in cash.
The electric bill for April totaled $163 and was paid in full.
Radio, TV, and newspaper advertising related to a special fund-raising campaign ran during May. The 7,550 cost had been paid in April.