Refer to P1.1. If these were the only items affecting the company during the period, what would
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Refer to P1.1. If these were the only items affecting the company during the period, what would Madsen’s net income be?
Data from P1.1
Classify each of the following items as affecting assets or liabilities and revenues or expenses for Madsen Company. State which financial statement (balance sheet or income statement) each item would impact. Assume Madsen uses the accrual basis of determining income.
A. Madsen Company’s employees have worked 500 hours, earning $7,500, and have not been paid.
B. Madsen Company provided $20,000 of service to customers who promised to pay for the services next month.
C. Madsen Company used $1,000 of office supplies.
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Related Book For
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines
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