Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following. Sept. 1 Paid rent for the month of September, $4,400. Sept. 3 Billed Fine Line Homes $5,620 for surveying services. The entire amount is due on or before September 28. (Weida uses an account entitled Surveying Revenue when billing clients.) Sept. 9 Provided surveying services to Sunset Ridge Developments for $2,830. The entire amount was collected on this date. Sept. 14 Placed a newspaper advertisement in the Daily Item to be published in the September 20 issue. The cost of the advertisement was $165. Payment is due in 30 days. Sept. 25 Received a check for $5,620 from Fine Line Homes for the amount billed on September 3. Sept. 26 Provided surveying services to Thompson Excavating Company for $1,890. Weida collected $400 cash, with the balance due in 30 days. Sept. 29 Sent a check to the Daily Item in full payment of the liability incurred on September 14. Sept. 30 Declared and paid a $7,600 cash dividend to the company’s stockholders. Instructions: Three of September’s transactions involve cash payments, yet only one of these transactions is recorded as an expense. Describe three situations in which a cash payment would not involve recognition of an expense.
Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following.
Sept. 1 Paid rent for the month of September, $4,400.
Sept. 3 Billed Fine Line Homes $5,620 for surveying services. The entire amount is due on or before September 28. (Weida uses an account entitled Surveying Revenue when billing clients.)
Sept. 9 Provided surveying services to Sunset Ridge Developments for $2,830. The entire amount was collected on this date.
Sept. 14 Placed a newspaper advertisement in the Daily Item to be published in the September 20 issue. The cost of the advertisement was $165. Payment is due in 30 days.
Sept. 25 Received a check for $5,620 from Fine Line Homes for the amount billed on September 3.
Sept. 26 Provided surveying services to Thompson Excavating Company for $1,890. Weida collected $400 cash, with the balance due in 30 days.
Sept. 29 Sent a check to the Daily Item in full payment of the liability incurred on September 14.
Sept. 30 Declared and paid a $7,600 cash dividend to the company’s stockholders.
Instructions:
- Three of September’s transactions involve cash payments, yet only one of these transactions is recorded as an expense. Describe three situations in which a cash payment would not involve recognition of an expense.
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