Ano: 2021

The above journal entry would settle the rent payable liability of $2,500 created through the adjusting entry on December 31, 2020 and remove the same from Hannifin’s books. Its accounting period ends on December 31 and it passes adjusting entries on the last day of each month. In this regard, if the tenant entity has […]

Under the accrual basis of accounting, the matching is NOT based on the date that the expenses are paid. Insurance Expense, Wages Expense, Advertising Expense, Interest Expense are expenses matched with the period of time in the heading of the income statement. Costs that are matched with revenues on the income statement. Assets are reported […]