Question

 Under accrual basis accounting, expenses are recognized when incurred. The following transactions occurred in January:

 Required:

 For each of the transactions, if an expense is to be recognized in January, indicate the amount.

Answer 1

Activity	Amount($)
a. american express paid its salespersons $3500 in commisions related to december sales of financial advisory services. Answer from american express standpoint.	0
b. On january31 american express determined that it will pay its spokesperson $4200 in commissions relaed to january sales. The payment will be made in early february answer from american expresse's standpoint.	4200
c. The city of omaha hired waste management inc. to provide trash collection services begining january 1. The city paid $12 million for the entire year. Answer from the city's standpoint.	12
d. The university of florida paid $10000 in advance fot refundable airline tickets to fly the baseball team for a tournament in california. The first game will be played in march. Answer from university's standpoint.	10000
e. A houston community college employee worked eight hours at $15 per hour on january 31 payday is not until february 3. Answer from the college's standpoint.	120
f. Wang company paid $3600 for a fire insurance policy on january 1. The policy covers 12 month begining on january 1. Answer from wang's point of view.	3600
g.Ziegler company, a farm equipment company, received a phone bill for $230 of january calls. The bill has not been paid to date.	230