You receive $45,000 in year 1 for a job to be started and completed in year 2. However, you purchase materials and supplies to prepare for the upcoming job. Materials and supplies purchased in year 1 cost $33,000. In year 2 you determine that you would need to purchase an additional $29,000 in supplies.

Transcribed Image Text:

Determine the profi for year 1 and 2 under both accrual and cash accounting (10 Marks) Accrual Basis Cash Basis Yri Yrt Y2 Revenue Supplies ProfiLoss Determine the profi for year 1 and 2 under both accrual and cash accounting (10 Marks) Accrual Basis Cash Basis Yri Yrt Y2 Revenue Supplies ProfiLoss

Answer rating: 100% (QA)

Answer to Part 1 Cash Basis Revenue Year 1 Particulars Amount Received in Year ... View the full answer