JHG Corp. is a service business. During 2021, JHG performed work for customers and billed those customers $200,000. Various customers paid JHG $140,000 cash during 2021 to settle their accounts. JHG's employees earned salaries totaling $40,000 in 2021. JHG paid employees $60,000 cash during 2021 for salaries, some of which was to pay for work performed before the end of 2020. Various other expenses JHG incurred in the course of performing work for customers for 2021 were $20,000, $15,000 of which were paid in cash in 2021. JHG paid $5,000 cash dividends to owners during 2021. What is JHG's net income (using accrual accounting) for 2021?

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To calculate JHG Corps net income using accrual accounting for 2021 we need to consider the revenues ... View the full answer