In June, Oceania Hospital makes cash sales of $20,000 and credit sales of $50,000 (all to be collected in July). It pays wages of $15,000 and owes $6000 for June expenses (all to be collected in July). 

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• What is the profit using cash accounting?
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• What is the profit using accrual accounting?
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• Solve the accounting equation for the missing figures in the table below: 

Assets ($)	Liabilities ($)	Equity ($)
66,000	32,000	(a)
(b)	296,000	364,000
146,000	(c)	75,000
(d)	15,000	42,000
963,000	432,000	(e)
198,000	(f)	126,000

 

Answer rating: 100% (QA)

SOLUTION Based on the information provided we can calculate the profit using cash accounting and acc... View the full answer