Carillo Painting collected 108,000 from customers in 2020. Of the amount collected, 25,000 was for services performed
Question:
Carillo Painting collected £108,000 from customers in 2020. Of the amount collected, £25,000 was for services performed in 2019. In addition, Carillo performed services worth £36,000 in 2020, which will not be collected until 2021.
Carillo Painting also paid £72,000 for expenses in 2020. Of the amount paid, £30,000 was for expenses incurred on account in 2019. In addition, Carillo incurred £42,000 of expenses in 2020, which will not be paid until 2021.
Instructions
a. Compute 2020 cash-basis net income.
b. Compute 2020 accrual-basis net income.
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Related Book For
Financial Accounting with International Financial Reporting Standards
ISBN: 978-1119504306
4th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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