Question
1.Your examination of the records of a company that follows the cash basis of accounting tells you that the companys reported cash-basis earnings in 2017
1.Your examination of the records of a company that follows the cash basis of accounting tells you that the companys reported cash-basis earnings in 2017 are $34,400. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.
| 2017 | 2016 | |||
| Accounts receivable | $4,000 | $2,000 | ||
| Supplies on hand | 1,690 | 1,790 | ||
| Unpaid wages owed | 2,490 | 2,610 | ||
| Other unpaid expenses | 1,710 | 1,230 |
Determine the companys net earnings on an accrual basis for 2017.
| Net earnings on an accrual basis for 2017 | = |
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Cost Accounting For Managerial Planning Decision Making And Control
Authors: Andrew Schiff, Hsihui Chang, Woody M Liao, James L Boockholdt
5th Edition
0759340412, 978-0759340411
