Basso's Landscaping Services had the following transactions in August, its first month of busines 1) Purchased...
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Basso's Landscaping Services had the following transactions in August, its first month of busines 1) Purchased $750 of supplies on account. All supplies were used in August but were paid for in September. 2) Received $600 from customers for services to be provided in September. 3) Collected $1,800 cash from customers for services provided in August. 4) Billed customers $1,200 for services provided in August. Instructions: Complete the chart below. (a) Calculate the profit for August using cash basis accounting. (b) Calculate the profit for August using accrual basis accounting. (a) Cash (b) Accrual Transaction (1) 1) 6) Transaction (2) 2) 7) Transaction (3) 3) 8) Transaction (4) 4) Profit 5) 10) Basso's Landscaping Services had the following transactions in August, its first month of busines 1) Purchased $750 of supplies on account. All supplies were used in August but were paid for in September. 2) Received $600 from customers for services to be provided in September. 3) Collected $1,800 cash from customers for services provided in August. 4) Billed customers $1,200 for services provided in August. Instructions: Complete the chart below. (a) Calculate the profit for August using cash basis accounting. (b) Calculate the profit for August using accrual basis accounting. (a) Cash (b) Accrual Transaction (1) 1) 6) Transaction (2) 2) 7) Transaction (3) 3) 8) Transaction (4) 4) Profit 5) 10)
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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