xample #6 The company received a bill for December’s utilities on January 5. The bill was for $235. Although the bill was received in January, the utilities were used in December to generate revenue in December. The matching principle tells us that we must record the utilities expense in December.   This is from accoutinginfocus.com, is this right? I just asked a question here and one answer said we should not include this at 12/31, I am confused right now, which one is correct?

Question

xample #6

The company received a bill for December’s utilities on January 5. The bill was for $235.

Although the bill was received in January, the utilities were used in December to generate revenue in December. The matching principle tells us that we must record the utilities expense in December.

 

This is from accoutinginfocus.com, is this right? I just asked a question here and one answer said we should not include this at 12/31, I am confused right now, which one is correct?

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, t...

A: 1.a. Compute the last year's CM ratio. 

Q: unland, Inc. produces three types of balloons—small, medium, and large—with the following characteri...

A: Calculate the contribution margin per hour:

Q: The company received a bill for December’s utilities on January 5. The bill was for $235.   So at 12...

A: Adjusting entries:Adjusting entries are made at the end of each accounting period, to record the rev...

Q: Explain what is meant by the term management by exception. What is the relationship between the proc...

A: Management by exception: Under this style of management, employees are allowed to take decisions rel...

Q: What is the correct answer for this question?

A: The variances are differences between the budgeted and actual expenses. Spending variances= Actual c...

Q: Bb Blackboard Learn mbe Course: ACCT 209: Survey of Acc X X New Tab ckboard.com/webapps/ubsh-Iti-int...

A: 1.Credit terms - 2/10 , n/30; Date June 8:Cash received = $30,000 (100% - 2%)Cash received = $29,400

Q: Hi i need help answering this question please! The last section got a bit cut off for part e but it ...

A: Click to see the answer

Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the com...

A: 1. It is to be noted that the fixed manufacturing cost is $270,000 every year within the production ...

Q: Problem 14-1The following amortization and interest schedule reflects the issuance of 10-year bonds ...

A: c) Determine the stated interest rate and the effective-interest rate: