A company maintains its records using accrual basis accounting; however, their accountant wants to create a...

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A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records. Services provided to customers during the period Salaries expense for the period Accounts receivable (beginning balance) Accounts receivable (ending balance) Salaries payable (beginning balance) Salaries payable (ending balance) $700,000 500,000 32,000 28,000 42,000 44,000 Complete the T-accounts for ACCOUNTS RECEIVABLE and SALARIES PAYABLE to help answer questions #1 &2. NOTE: ALL SERVICES PROVIDED ARE ON ACCOUNT AND SALARIES EXPENSE ARE RECORDED BEFORE THEY ARE PAID. SALARIES PAYABLE ACCOUNTS RECEIVABLE 1. Determine the amount of cash collected from customers during the period: $ 2. Determine the amount for cash paid for salaries during the period: $ 3. Determine accrual basis net income for the period: $_ 4. Determine cash basis net income for the period: $__ Use the following to answer questions 5-6 Following is a February transaction for a company. Calculate the amount of expense to recognize in February. Recorded $20,000 salaries and wages for February, paid $15,000 in February and will pay $5,000 in March. 5. Accrual basis expense: $ 6. Cash basis expense: $ Use the following to answer 7-8 Following is a February transaction for a company. Calculate the amount of revenue to recognize in February. In February the company performed $30,000 of services and received $40,000 payment from customers for services performed in February and January. 7. Accrual basis revenue: $ 8. Cash basis revenue: $ A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records. Services provided to customers during the period Salaries expense for the period Accounts receivable (beginning balance) Accounts receivable (ending balance) Salaries payable (beginning balance) Salaries payable (ending balance) $700,000 500,000 32,000 28,000 42,000 44,000 Complete the T-accounts for ACCOUNTS RECEIVABLE and SALARIES PAYABLE to help answer questions #1 &2. NOTE: ALL SERVICES PROVIDED ARE ON ACCOUNT AND SALARIES EXPENSE ARE RECORDED BEFORE THEY ARE PAID. SALARIES PAYABLE ACCOUNTS RECEIVABLE 1. Determine the amount of cash collected from customers during the period: $ 2. Determine the amount for cash paid for salaries during the period: $ 3. Determine accrual basis net income for the period: $_ 4. Determine cash basis net income for the period: $__ Use the following to answer questions 5-6 Following is a February transaction for a company. Calculate the amount of expense to recognize in February. Recorded $20,000 salaries and wages for February, paid $15,000 in February and will pay $5,000 in March. 5. Accrual basis expense: $ 6. Cash basis expense: $ Use the following to answer 7-8 Following is a February transaction for a company. Calculate the amount of revenue to recognize in February. In February the company performed $30,000 of services and received $40,000 payment from customers for services performed in February and January. 7. Accrual basis revenue: $ 8. Cash basis revenue: $

Answer rating: 100% (QA)

To answer these questions well first need to create Taccounts for Accounts Receivable and Salaries Payable based on the provided information Then well use the information to answer the questions Lets ... View the full answer