external event recorded as a transaction (E)? internal event recorded as a trans

Question

external event recorded as a transaction (E)? internal event recorded as a transaction (I)? or not recorded (NR)....................................................................... 1. A vendor for a companys supplies is paid an amount owed on account ............................2. A customer pays its open account. ..............................3. A new chief executive officer is hired................................. 4. The biweekly payroll is paid...................... 5. Depreciation on equipment is recognized............................. 6. A new advertising agency is hired to develop a series of newspaper ads for the company.......................... 7. The advertising bill for the first month is paid. ...............................8. The accountant determines the federal income taxes owed based on the income earned during the period.

Explanation / Answer

1. A vendor for a companys supplies is paid an amount owed on account EXTERNAL 2. A customer pays its open account. EXTERNAL 3. A new chief executive officer is hired NOT RECORDED 4. The biweekly payroll is paid INTERNAL 5. Depreciation on equipment is recognized INTERNAL 6. A new advertising agency is hired to develop a series of newspaper ads for the company NOT RECORDED (ASSUMING WE HAVE NOT PAID THEM OR ACCRUED A LIABILITY/THEY PROVIDED US A SERVICE YET) 7. The advertising bill for the first month is paid. EXTERNAL 8. The accountant determines the federal income taxes owed based on the income earned during the period. INTERNAL

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