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Chapter 12
Example 1
A business entity is preparing its financial statements for the year ended 31
December 20X1.
Required:
Prepare the telephone expense account for the year ended 31 December
20X1 based upon the following information:
Bills received and paid during 20X1:
28 Feb $460
31 May $440
30 Aug $390
30 Nov $420
Bill received on 28 Feb 20X2 $450 (for calls made in the period 1 Dec. 20X1 to
28 Feb 20X2)
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