I need to note how certain transactions in July would be handled using both the cash and accrual basis of accounting. I need to state if the transaction is “neither revenue nor expense”, "Revenue" or "Expense". One transaction was in mud July and said, "Paid $3,000 cash for kitchen equipment."
Now, under cash basis this item would be 'expense $3,000' but does it also appear in the accrual basis as an expense? because it is an asset how can we assign it to accrual in July when it would be spread out over the lifetime of the assets' use?