In the Space Below, State Whether Each Situation Is a Deferral

question 45

Essay

In the space below, state whether each situation is a deferral or an accrual.
______a. Depreciation on machinery is $7,200 for the accounting period.
______b. Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______c. Office supplies of $965 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $640. At the end of the period, $120 in office supplies remained.
______d. Commissions amounting to $975 were earned but not yet collected by year end.
______e. Prepaid Rent had a $2,500 balance prior to adjustment. By year end, 50 percent had expired.

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