At the beginning of Year 1, Swift Corp.s accounting records had the following general ledger accounts and
Mikes Business Services experienced the following events during its first year of operations.
Acquired $40,000 cash from the issue of common stock.
Borrowed $24,000 cash from Standard Bank.
Paid $10,000 cash to purchase land.
Effect of accruals on the financial statements
a. Identify the events that results in revenue or expense recognition.
Revenue events are $82,000 in services and $19,000 in services.
Expense events are $53,000 for operating and $3500 for util