Problem $6-3($Algorithmic$)$

Accounting Methods $($LO $6\mathrm{.}2)$

Geraldine is an accrual$-$basis taxpayer who has the following transactions during the current calendar tax year:

Line Item Description Amount

Accrued business income for products shipped $($except rent$)$ $$313,400$

Cash received in advance for products not yet shipped $10,000$

Accrued business expenses $($except rent$)235,050$

Rental income on a building lease for the next $6$ months, received on December $131,340$

Prepaid rent expense for six months, paid on December $115,670$

Calculate Geraldine's net income from her business for the current year.

If required, your answers to the nearest dollar.

Line Item Description Amount

Income:

Accrued $fill in the blank $1$

Advance payments $fill in the blank $2$

Rental fill in the blank $3$

Expenses:

Other than rental fill in the blank $4$

Rental fill in the blank $5$

Net income $fill in the blank $6$