Your examination of the records of a company that follows the cash basis of accounting tells you

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Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash-basis earnings in 2022 are $33,640. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.

2022 2021 Accounts receivable Supplies on hand Unpaid wages owed Other unpaid expenses $3,400 $2,800 1,460 2,400 1,300 2

Instructions

Determine the company’s net earnings on an accrual basis for 2022. Show all your calculations in an orderly fashion.

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Related Book For answer-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119493631

9th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jul 10, 2019 08:10 AM

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Your examination of the records of a company that follows the cash basis of accounting tells you

Question:

2022 2021 Accounts receivable Supplies on hand Unpaid wages owed Other unpaid expenses $3,400 $2,800 1,460 2,400 1,300 2,000 1,400 1,100

Step by Step Answer:

33640 Cash basis earnings 3400 Accounts receivable arise from sales that have been made thus revenu...View the full answer

Financial Accounting Tools for Business Decision Making

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