Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed
Question:
Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed in 2021. In addition, Primo performed services worth $40,000 in 2022, which will not be collected until 2023.
Primo Industries also paid $72,000 for expenses in 2022. Of the amount paid, $30,000 was for expenses incurred on account in 2021. In addition, Primo incurred $42,000 of expenses in 2022, which will not be paid until 2023.
Instructions
a. Compute 2022 cash-basis net income.
b. Compute 2022 accrual-basis net income.
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Related Book For
Financial Accounting
ISBN: 9781119594598
11th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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