Posted: March 16th, 2017
Transaction # 1: Grantham Landscaping Co. usually receives a monthly phone bill for $200, in which a check is issued for immediately. However, for this month end, the bill never came.
Transaction # 2: Grantham Landscaping Co. The next month has opened up since the period which Transaction # 1 occurred. The bill has now been received and a check will be issued immediately. What is the proper treatment for the accrual journal entry which occurred last month.
Discuss why it’s important for the accrual to be made in regards to financial reporting
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