1. Edgar's Consulting Services Company requires all customers to pay in advance for the services they receive. Edgar's records all customer prepayments as Unearned Service Revenues. On its accrual-basis income statements, Edgar's reported $1,178,700 of revenues in 2005. On its accrual-basis balance sheets, Edgar's reported Unearned Service Revenues of $251,600 at the end of 2004 and $369,800 at the end of 2005. What would revenues have been for 2005 using the cash-basis of accounting? 2. Within the cash-basis framework of accounting, commerce is recorded only when the cash associated with them is issued or received. Therefore, when an organization receives cash from a customer, it records the sale on a cash basis, not at the time of billing. Cash-based is widely used by small businesses because it requires only a limited level of accounting knowledge. However, you may need to switch to accrual accounting to check your company's books, publish them, or take out a loan in preparation for a sale. Based on accrual accounting, revenues and expenses are recorded during the period in which they are generated, regardless of actual cash flows. From this context describe how you can convert the cash basis to accrual basis of accounting. Describe why the conversion of cash basis to accrual basis accounting can be a difficult one? 1. If you get a 20% discount on pizza, your profit will be 32%. If the discount is 18%, calculate the profit? 2. According to accrual accounting, revenue is recognized in the income statement when it is incurred. If you are making revenue but not receiving cash, your bond will be recognized. (In cash-based accounting, income appears in the income statement only when cash is received.) Even in accrual accounting, there is no measurable future benefit if it matches the reported income or in cost. If so, the cost will be displayed on the income statement. If there is an expense and the cash has not yet been paid, the liability account will also be retained. (Costs not paid in the current accounting period will be displayed by adjusting the entry.)In the context of accrual accounting (or accounting), sales are recognized in the income statement when they are generated. If you are making revenue but not receiving cash, your bond will be recognized. (In cash-based accounting, income appears in the income statement only when cash is received.) Even in accrual accounting, there is no measurable future benefit if it matches the reported income or in cost. If so, the cost will be displayed on the income statement. . If there is an expense and the cash has not yet been paid, the liability account will also be retained. Discuss the accrual basis of accounting? Let's say I started an accounting business in December and ran a $ 10,000 accounting service in December. I allow customers to pay within 30 days, so none of the $ 10,000 fees I earned in December were received in December. Rather, my client paid $ 10,000 in January. Give a description on how to report the revenues on accrual basis of accounting? Now let's assume that I paid office rent of $1,500 and incurred $300 of costs for electricity, gas, and sewer/water during December. However, the utilities will not read the meters until January 1, will bill me on January 10 and require that I pay the bill by February 1. How should you report the expenses on the accrual basis of accounting?