Activity 1.a

HINT Activity 1.a - Identifying Differences between Cash and Accrual Basis Read each scenario and fill in the Cash basis/Accrual basis table. Purple Tulip Law Firm prepays for advertising in the local newspaper on January 1, the law firm paid $3,450 for six months of advertising. Cash Bas Accrual Base Cash Payment January 1 penses Hecorded January 31 Total Expenses Recorded Secure Home provides house sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31. Secure Home has collected $700 from cash paying customers. Secure Home's remaining customers owe the business $1,600. Cash Basis Accrual basis Cash received Revenue Recorded Total Revenue Recorded Momentous Occasions received $2,800 for services to be performed for the next 8 months on March 31. Cash Basis Accrual Basis Casb received Revenue Recorded Total Revenue Recorded