Consider the following transactions. Required: For each transaction, determine the amount of revenue or expense, if any
Question:
Consider the following transactions.
Required:
For each transaction, determine the amount of revenue or expense, if any that is recorded under accrual-basis accounting and under cash-basis accounting.
Transcribed Image Text:
Accrual-Basis Cash-Basis Transaction Revenue Expense Revenue Expense 1. Receive cash from customers at the time of service, $3,700. 2. Issue common stock for cash, $6,000 3. Receive cash from customers who were previously billed, $1,700. 4 Incur utilities cost in the current month but do not pay, $600 5. Pay workers' salaries for the current month, $700 6. Pay for rent one year in advance, $3,600 7. Repay a long- ._ term note to the bank, $3,000 8. Pay workers salaries for the previous month, $850 9. Pay dividends to stockholders, $500. 10. Purchase office supplies for cash, $540
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
AccrualBasis CashBasis Transaction Revenue Expense Revenue Expen...View the full answer
Answered By
Joram mutua
I am that writer who gives his best for my student/client. Anything i do, i give my best. I have tutored for the last five years and non of my student has ever failed, they all come back thanking me for the best grades. I have a degree in economics, but i have written academic papers for various disciplines due to top-notch research Skills.In additional, I am a professional copywriter and proofreader.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Question Posted:
Students also viewed these Accounting questions
-
Consider the following transactions of Pearl Software: Mar. 31 Recorded cash sales of $ 180,000, plus sales tax of 8% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state....
-
Which of the following is not a limiting factor of cost-volume-profit analysis? OA) The process assumes a linear relationship among the variables. OB) The process assumes variable costs per unit are...
-
1. Bode has cumulative earnings of $61,200. His current earnings are $3,366.00. Bode's 2020 OASDI withholding is: $ And his 2020 HI withholding is: $ 2. Dale's current earnings total a gross amount...
-
1. Read the following article about the new circle with disney product and answer the following questions. in doing so, take on the role as the marketing manager responsible for the product and...
-
Describe how this close-up image of an alpine meadow represents a community.
-
Noah and Joan Arcs Tax Return Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1983 and Joan was born on July 1,...
-
Given that there is a fixed supply of land in the world, what implications can you draw from Figure 1 about the effects of an increase in world population for food output per head?
-
Data for two alternatives are as follows: If the MARR is 12%, compute the value of X that makes the two alternatives equally desirable. B Cost $800 $1000 Uniform annual benefit 230 230 Useful life,...
-
In what ways do you experience a lack of privilege/marginalization/oppression? how did you learn to respond to oppression (e.g. how was it explained to you, what functional/dysfunctional reactions...
-
It has been proposed that oxygen be separated from nitrogen by absorbing and desorbing air in water. Pressures from 101.3 to 10,130 kPa and temperatures between 0 and 100C are to be used. (a) Devise...
-
The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances: The following is a summary of the transactions for the year: a. Sales of services, $60,000, of...
-
Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual...
-
To keep a refrigerator in steady state at 2oC, heat has to be removed from it at a rate of 200 kJ/min. If the surrounding air is at 27oC, determine (a) The minimum power input to the refrigerator....
-
The electricity account is received every three months and the last account was processed during April for FebruaryApril. For the 10 months ended 30 April 2022 the electricity account balance was...
-
M Bromley purchased office equipment on 1 January 2021 for $19 250 ($17 500 + $1750 GST) and expected that the useful life would be five years with a nil residual value. Use straight line...
-
Equipment is purchased on 31 December 2021 for $23 100 ($21 000 + $2100 GST). It is to be depreciated at 15% p.a. straight line depreciation and is expected to have a residual value of $1100 ($1000 +...
-
P Way purchased a motor vehicle on 1 July 2021 for $38 500 ($35 000 + $3500 GST) with an estimated residual value of $3300 ($3000 + $300 GST) and an estimated useful life of four years. Using...
-
An extract of balances at 31 December 2022 showed accounts receivable control $60 610, allowance for doubtful debts $750, GST payable $1000 and bad debts expense $2500. Using the combined method,...
-
How would an increase in the required reserve ratio affect banks' ability to create money? a. Banks will be able to create more money because of the decrease in excess reserves. b. Banks will be able...
-
Given find the value of k. es 1 e kx dx = 1 4'
-
The transition probabilities of a Markov chain model for streamflow in two different seasons are given in Tables 12. 12 and 12. 13. Calculate the steady-state probabilities of flows in each interval...
-
Who bears the freight when the terms of sale are? (a) FOB shipping point, (b) FOB destination?
-
Who bears the freight when the terms of sale are? (a) FOB shipping point, (b) FOB destination?
-
Journalize the following merchandise transactions: a. Sold merchandise on account, $41,000 with terms 1/10, n/30. The cost of the merchandise sold was $22,500. b. Received payment less the discount.
-
I'm having issues with DNS in microsoft server? What's a good way to diagnose or troubleshoot where the problem is where DNS is concerned?
-
Your company is considering a move to in-house virtualization or maybe a cloud platform. The application that is being moved is a web app that does not contain any sensitive data. The apps usage...
-
Howare cloud computing and virtualization interconnected? explain in detail.
Study smarter with the SolutionInn App