Adjusting Entries: Accrued Expenses Video Lessons

Concept

# Problem: In Year 2, Greenleaf Company records the payment of $400 cash for an expense accrued in Year 1 and records the accrual of$225 for another expense. The impact of these two entries on Year 2 total expenses and liabilities is:      Total Expenses        Liabilities a) Increase by $625 Decrease by$225 b) Increase by $625 Decrease by$625 c) Increase by $225 Decrease by$625 d) Increase by $225 Decrease by$175 e) Decrease by $175 Decrease by$175

###### Problem Details

In Year 2, Greenleaf Company records the payment of $400 cash for an expense accrued in Year 1 and records the accrual of$225 for another expense. The impact of these two entries on Year 2 total expenses and liabilities is:

Total Expenses        Liabilities

a) Increase by $625 Decrease by$225

b) Increase by $625 Decrease by$625

c) Increase by $225 Decrease by$625

d) Increase by $225 Decrease by$175

e) Decrease by $175 Decrease by$175

What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Adjusting Entries: Accrued Expenses concept. You can view video lessons to learn Adjusting Entries: Accrued Expenses. Or if you need more Adjusting Entries: Accrued Expenses practice, you can also practice Adjusting Entries: Accrued Expenses practice problems.

What is the difficulty of this problem?

Our tutors rated the difficulty ofIn Year 2, Greenleaf Company records the payment of \$400 cas...as medium difficulty.