Exam 3: The Measurement Framework and Mechanics of Financial Accounting

Jarrad Company has been in business several years.During January of 2010, the following transactions occurred: ·Paid employees $5,000 for wages during January. ·Paid $2,000 cash for other operating expenses of which $1,000 related to December and the balance related to January. ·Paid utilities and rent for January in the amount of $1,800. ·Paid a cash dividend to shareholders in the amount of $900 during January. How much is total Expenses that Jarrad Company will report for January 2010? Why is this amount different than the amount paid during the month?