Read each transaction and identify the appropriate journal in which it should be recorded. 1 . Owner withdrew supplies. 2 . Sale made on account. 3 . Payment to vendor on account. 4 . Payment received from customer on account. 5 . Purchases on account. 6 . Adjusting journal entry for supplies used. 7 . Owner withdrew cash. 8 . Company borrows money from bank. 9 . Record monthly depreciation. 10 . Close revenue accounts at month's end.
Question 2
Catlett County Hospital, a governmental hospital, has its financial statement audit done by a local CPA firm. In 2012, the CPA firm announced that it would no longer charge for the audit.
How is the County Hospital required to report the donated audit in 2013, assuming that it would have been billed 20,000 for the audit and that the cost incurred by the CPA firm is estimated at 11,000?
a. Report contribution revenue of 20,000 and audit fees of 11,000
b. Report contribution revenue of 0 and audit fees of 0
c. Report contribution revenue of 20,000 and audit fees of 20,000
d. Report contribution revenue of 11,000 and audit fees of 11,000.
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