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Please provide the proper journal entries for the two different types of accruals for Grantham Landscaping LLC. Please use accrual base accounting.
Transaction # 1: Grantham Landscaping Co. usually receives a monthly phone bill for $200, in which a check is issued for immediately. However, for this month end, the bill never came.
Transaction # 2: Grantham Landscaping Co. The next month has opened up since the period which Transaction # 1 occurred. The bill has now been received and a check will be issued immediately. What is the proper treatment for the accrual journal entry which occurred last month.
Discuss why its important for the accrual to be made in regards to financial reporting.
Note: This is for a discussion forum. Only 75 150 words are needed
one month ago
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