Please help?

Question

Gas Accrual for January 15,000
Gas Accrual for February 15,000
Gas Accrual for March 12,000
Gas bill paid in March for January 25,000

a) Prepare journal entries in Jan, Feb and March including reversals of accruals, accounts payable and payment of accounts payable






b) What is March’s gas expense on the income statement


c) What is March’s YTD gas expense on the income statement


d) What is the operating expense liability (accrual) account balance in March

Answer 1

a)Prepare journal entries in Jan, Feb and March including reversals of accruals, accounts payable and payment of accounts payable
Jan 31
Dr Gas expense 15,000
Cr Gas payable 15,000

Feb 28
Dr Gas expense 15,000
Cr Gas payable 15,000

Mar 31
Dr Gas expense 12,000
Cr Gas payable 12,000

Dr Gas expense 10,000
Dr Gas payable 15,000
Cr Cash 25,000
(being gas bill underaccrued for Jan. now paid)

b)What is March’s gas expense on the income statement
March gas expense:
Accrued for Mar itself 12,000
Underaccrual for Jan 10,000
Total gas expense for March in income statement $22,000

c)What is March’s YTD gas expense on the income statement
March’s YTD gas expense:
Jan (actual) 25,000
Feb (accrued) 15,000
Mar (accrued) 12,000
March’s YTD gas expense : $52,000

d)What is the operating expense liability (accrual) account balance in March
Gas payable a/c:
Feb's accrual 15,000
Mar's accrual 12,000
Gas payable a/c at Mar 31 : 27,000

Answer 2

Didja check your text book yet?