During the year. Black Diamond Company earned $86,500 in revenue. At year-end, only $65,000 of that revenue had been collected. Also, Black Diamond incurred $44,000 of expenses of which only $35,000 had been paid. Required Determine net income for the year under (a) the cash basis of accounting and (b) the accrual basis of accounting.

During the year. Black Diamond Company earned $86,500 in revenue. At year-end, only $65,000 of that revenue had been collected. Also, Black Diamond incurred $44,000 of expenses of which only $35,000 had been paid.
Required
Determine net income for the year under (a) the cash basis of accounting and (b) the accrual basis of accounting.

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Related Book For answer-question

Financial ACCT2

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

ISBN: 978-1111530761