Alberton Counselling Service has the following selected transaction during october.

Oct. 1 Prepaid insurance for October through December $450.

       4. Purchased Office equipment for cash $800

       5. Perforemed counselling service and received cash $700

       8. Paid advertising expense $300

      11. Performed counselling service on account $1200

      19. Purchased office furniture on account $150

      24. Collected $400 on account for the October 11 service

      26. Paid accountpayable from October 19

      29. Paid salary expense $900

      31. Recorded adjusting entry for October insurance expense (see October 1)

      31. Debited unearned revenue and credited revenue to adjust the account $600

Required

1. Show how each transaction would be handled using the cash basis and the accrual basis. Under each column give the amount of revenue or expensefor October. Journal entries are not required. Use the following format for your answer and show your computation:

Alberton Counselling Service - Amount of Revenue or Expense for October

Date                       Cash Basis                           Accrual Basis

2. Compute October net income or net loss under each method

3.Indicate which measure of net income or net loss is preferable. Give your reason.

Answer rating: 100% (QA)

Page No B010 Date Pate Partiulant cafh Basis Aceural Bai otrat eqeripment 04l10 Purch a ... View the full answer