Parri Corp. has following transactions during July: a. Common stock of $4,000 was issued to a...
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Parri Corp. has following transactions during July: a. Common stock of $4,000 was issued to a stockholder in exchange for equipment. b. Provided services of $9,000. Received $7,150 and billed client for the rest. c. Performed $6,400 of services which had been previously paid for by client in June. d. Received July's electric bill of $800; will pay in August. e. Traded $2,000 of inventory for printing equipment. f. Paid $6,000 covering the next six months of rent (July - December). How much net income would Parri report for July under the ACCRUAL basis? Parri Corp. has following transactions during July: a. Common stock of $4,000 was issued to a stockholder in exchange for equipment. b. Provided services of $9,000. Received $7,150 and billed client for the rest. c. Performed $6,400 of services which had been previously paid for by client in June. d. Received July's electric bill of $800; will pay in August. e. Traded $2,000 of inventory for printing equipment. f. Paid $6,000 covering the next six months of rent (July - December). How much net income would Parri report for July under the ACCRUAL basis?
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SOLUTION To calculate the net income for July under the accrual basis we need to recognize revenue w... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1119392132
3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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