Wildhorse Industries collected $117,600 from customers in 2022. Of the amount collected, $28,000 was for services...

  

Transcribed Image Text:

Wildhorse Industries collected $117,600 from customers in 2022. Of the amount collected, $28,000 was for services performed in 2021. In addition, Wildhorse performed services worth $44,800 in 2022, which will not be collected until 2023. Wildhorse Industries also paid $80,640 for expenses in 2022. Of the amount paid, $33,600 was for expenses incurred on account in 2021. In addition, Wildhorse incurred $47,040 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income (b) Compute 2022 accrual-basis net income. Accrual-basis net income %24 %24 Wildhorse Industries collected $117,600 from customers in 2022. Of the amount collected, $28,000 was for services performed in 2021. In addition, Wildhorse performed services worth $44,800 in 2022, which will not be collected until 2023. Wildhorse Industries also paid $80,640 for expenses in 2022. Of the amount paid, $33,600 was for expenses incurred on account in 2021. In addition, Wildhorse incurred $47,040 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income (b) Compute 2022 accrual-basis net income. Accrual-basis net income %24 %24

Answer rating: 100% (QA)

a Computation of Cash Basis Net Income in 2022 Cash Basis Net Income in 2022 Total Cash Received in ... View the full answer