Consider the following transactions. Required: For each transaction, determine the amount of revenue or expense, if any
Question:
Consider the following transactions.
Required:
For each transaction, determine the amount of revenue or expense, if any that is recorded under accrual-basis accounting and under cash-basis accounting.
Transcribed Image Text:
Accrual-Basis Cash-Basis Transaction Revenue Expense Revenue Expense 1. Receive cash from customers at the time of service, $3,700. 2. Issue common stock for cash, $6,000 3. Receive cash from customers who were previously billed, $1,700. 4 Incur utilities cost in the current month but do not pay, $600 5. Pay workers' salaries for the current month, $700 6. Pay for rent one year in advance, $3,600 7. Repay a long- ._ term note to the bank, $3,000 8. Pay workers salaries for the previous month, $850 9. Pay dividends to stockholders, $500. 10. Purchase office supplies for cash, $540
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
AccrualBasis CashBasis Transaction Revenue Expense Revenue Expen...View the full answer
Answered By
Joram mutua
I am that writer who gives his best for my student/client. Anything i do, i give my best. I have tutored for the last five years and non of my student has ever failed, they all come back thanking me for the best grades. I have a degree in economics, but i have written academic papers for various disciplines due to top-notch research Skills.In additional, I am a professional copywriter and proofreader.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Question Posted:
Students also viewed these Accounting questions
-
Consider the following transactions of Pearl Software: Mar. 31 Recorded cash sales of $ 180,000, plus sales tax of 8% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state....
-
Which of the following is not a limiting factor of cost-volume-profit analysis? OA) The process assumes a linear relationship among the variables. OB) The process assumes variable costs per unit are...
-
1. Bode has cumulative earnings of $61,200. His current earnings are $3,366.00. Bode's 2020 OASDI withholding is: $ And his 2020 HI withholding is: $ 2. Dale's current earnings total a gross amount...
-
1. Read the following article about the new circle with disney product and answer the following questions. in doing so, take on the role as the marketing manager responsible for the product and...
-
Describe how this close-up image of an alpine meadow represents a community.
-
Why must voluntary trade between two countries be mutually beneficial?
-
Fleetwood Homebuilders issued S200,000 of \(6 \%, 10\)-year bonds at par on August 31. Fleetwood pars semiannual interest on February 28 and August 31. Journalize for Fleetwood: a. Issuance of the...
-
1. How serious were the alleged accounting misstatements? As part of your answer, consider whether they were material and whether they were fraudulent. 2. Suppose you were defending Mr. Rand. Could...
-
Find in a newspaper or similar news source, (such as the New York Times or the Wall Street Journal) an article related to biology. The article must be within one year. Critically read the article....
-
Jack Tasker opened his Auto Repair Shop in November 2023. The balance sheet at November 30, 2023, prepared by an inexperienced part-time bookkeeper, is shown below. Required Prepare a correct balance...
-
The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances: The following is a summary of the transactions for the year: a. Sales of services, $60,000, of...
-
Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual...
-
At December 31, 2018, Hawke Company reports the following results for its calendar year. In addition, its unadjusted trial balance includes the following items. Required 1. Prepare the adjusting...
-
Research existing applications and discuss problems with them. Explain whether one can fix these problems, by using SAPs.
-
Does this pattern the factor of extendibility to it?
-
Do these constraints reduce the number of applications for the competition pattern?
-
Is this pattern scalable, stable, and reusable? If so, list some of the reasons.
-
Identify the EBT for the word Change and give reasons for this choice.
-
Provide an Excel worksheet for Example 1.2-4 and play a bit, changing the transition matrix and watching what happens. Consider several realizations, generating different random numbers. Example...
-
g(x) = x 5 5x 6 a. Show that g(x) = 0 has a root, , between x = 1 and x = 2. b. Show that the equation g(x) = 0 can be written as x = (px + q) 1/r , where p, q and r are integers to be found. The...
-
The transition probabilities of a Markov chain model for streamflow in two different seasons are given in Tables 12. 12 and 12. 13. Calculate the steady-state probabilities of flows in each interval...
-
Who bears the freight when the terms of sale are? (a) FOB shipping point, (b) FOB destination?
-
Who bears the freight when the terms of sale are? (a) FOB shipping point, (b) FOB destination?
-
Journalize the following merchandise transactions: a. Sold merchandise on account, $41,000 with terms 1/10, n/30. The cost of the merchandise sold was $22,500. b. Received payment less the discount.
-
Define the IT organizational structure and how the IT organizational structure impacts culture and change management practices. Additionally, how does the organizational structure impact competitive...
-
Airline Accessories has the following current assets: cash, $105 million; receivables, $97 million; inventory, $185 million; and other current assets, $21 million. Airline Accessories has the...
-
Last Chance Mine ( LC ) purchased a coal deposit for $ 7 2 0 , 0 0 0 . It estimated it would extract 1 2 , 0 0 0 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts...
Study smarter with the SolutionInn App