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$)$ $$271,800$

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

Accrued business expenses $($except rent$)203,850$

Rental income on a building lease for the next $6$ months, received on December $127,180$

Prepaid rent expense for six months, paid on December $113,590$

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 $$\_\_\_\_\_$

Advance payments $$\_\_\_\_\_\_$

Rental $\_\_\_\_\_\_\_\_\_\_\_$

Expenses:

Other than rental $\_\_\_\_\_\_\_\_\_\_\_$

Rental $\_\_\_\_\_\_\_\_$

Net income $$\_\_\_\_\_\_\_\_\_$