Unformatted text preview: Expiration of Unexpired Costs - An explicit transaction in the past creates an
asset, and subsequent implicit transactions
serve to adjust the value of the asset - Suppose a company purchases $10,000 of
Office Supplies Inventory on March 1, 2005.
Thejournal entry to record this explicit
transaction is: Office Supplies Inventory $10,000
Cash $10,000 ...
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- Fall '07
- Financial Accounting