On May 2, Johnson's Landscaping LLC Paid $4,700 for Repairs

On May 2, Johnson's Landscaping LLC paid $4,700 for repairs made to equipment during April. During May fuel costs for its machinery were $5,800 to be paid in June. Johnson's lawn mowers were depreciated for May by an amount of $1,000 using the straight-line method. What would be the company's equipment-related expenses for May under cash accounting and what would the expenses be under the accrual basis for May?

A) $10,500 under both cash and accrual basis
B) $4,700 under cash basis; $5,800 under accrual basis
C) $4,700 under the cash basis; $6,800 under the accrual basis
D) $4,700 under the cash basis; $10,500 under accrual basis

Correct Answer:

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