XYZ Corp. a computer service company had the following transactions during 2011
a. Total computer parts sales for the month were $41,000, received only $21,000 in cash. The inventory that was sold had a cost of $25,900.
b. Fire insurance on XYZ’s office building was purchased on April 1. The insurance expires March 31, 2013, and costs $3,600.
c. George Hale, a salesman with XYZ, signed a two-year service contract with Micro Data LLC for $48,000. The contract was signed on June 1, 2011, with Micro Data paying the full amount on that date.