Cash Hash » Cash Hash » Cash Back » Accrual or cash basis? (please help)?

  #1 ()
: I understand the difference between accrual and cash basis accounting. But I'm looking at a company's accounting records and some have me stumped.

1) Wages owed to emplees at year-end. (would this be only under accrual accounting?)

2) Interest due at 12/31 on loan to be paid in march of next year (it is 12/31 so does that mean it'll be paid and is cash basis? This one I especially don't understand)

3) Income taxes owed at year end.

4) Amount paid for one and one-half years's rent, beginning jan. 1, 2012 (it is now 12/31/2012)

Thanks for reading!

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  #2 ()
: All would be recorded differently for cash & accrual.

1) No entry for cash, accrue wages for accrual
2) No entry for cash, accrue interest for accrual
3) No entry for cash, accrue taxes for accrual
4) Expense when paid for cash, record prepaid rent and amortize for accrual
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