DAN had $2000 beginning balance in utilities payable. He had an ending balance of $4000. Over the course of the period ABC received a bill for utilities for $5000. How much cash did they pay for utilities over the course of the period?
a. What journal entries did they book to go from the beginning balance to the ending balance?
b. How much more or less expense was booked under the accrual basis than the cash basis?