a 8 A21 Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions take A 1 Financial Reporting Theory 2 Cash versus Accrual Bases of Accounting 3 Top Notch Services was founded on January 2 and offers computer consulting and other technology-related services. During its 4 first quarter of operations, the following events occurred: S January $ 40,000 Top Notch provided and billed clients for consulting services. The services were paid for in 6 March 7 b. January $ 25,000 Top Notch provided services for clients and collected payment during the month C February $ 45,000 Top Notch provided and billed clients for consulting services 9 $ 12,000 it collected in the current month and the remaining amount in March 10 d. March $ 34,000 Top Notch provided services for clients and collected payment during the month. 11 $ 21,000 Top Notch billed clients for an additional amount for services provided. 12 e. January $ 12,000 Top Notch pays employees at the end of each month for service provided. 13 February $ 13,000 March $ 15,000 f. January $ 800 Top Notch pays its utility bills at the end of each month. 16 February $ 17 March $ 1,000 February $ 1.200 Top Notch hired an independent contractor who provided services in February. The contractor 18 was paid in March 19 20 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you 21 will be marked wrong. 22 23 Requirement Determine Top Notch's net income for each month from January through March under both the cash and the accrual bases of 24 accounting Enter the answers as positive values. Use a minus sign or parentheses for any net losses 26 INSTRUCTIONS ENTERANSWERS 15 850 o RE Tyne here to search EHE Home Copy of Format Paintec Draw Page Layout Formas Data Review View Developer Help Calibri 12 AA==. Wrap Text Custom BIU - - - A.. as Murge & Center $ - % -13 Font Alignment Conditional Format Cell Formatting Table Styles Insat Geboord B6 B D C 1 Determine Top Notch's net income for each month from January through March under both the cash and the accrual bases of accounting, (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you 2 will be marked wrong.) 3 4 Revenue Recognition Cash Basis Accrual Basis Expense Recognition Cash Basis Accrual Basis Net Income (Loss) Cash Basis Accrual Basis 5 Month 6 January 7 February 8 March 9 Total 10 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27
