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A brewing company operating in an Ontario city experiencing water shortages received its water

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A brewing company operating in an Ontario city experiencing water shortages received its water

A brewing company operating in an Ontario city experiencing water shortages received its water
bill for December 1999, on December 31, 1999. The bill ($8,000) represents the cost of water
used in December to make its product. The company will not publish the 1999 financial
statements until February 2000. Therefore, the adjusting entry as of December 31, 1999 includes
which of the following?
A) cr. utilities payable $8,000
B) cr. cash $8,000
C) cr. utilities expense $8,000
D) no adjusting entry needed because the bill will not be paid until January 2000

Textbook

Intermediate Accounting, Volume 2

Edition: 5^th

Authors: Beechy, Conrod, Farrell

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More solutions for this book are available here

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