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Accrual Accounting Evan Corporation provided consulting services for Kensington Company in 2019. Evan incurred costs of $15,000 associated with the consulting and billed Kensington $22,500.
Accrual Accounting Evan Corporation provided consulting services for Kensington Company in 2019. Evan incurred costs of $15,000 associated with the consulting and billed Kensington $22,500. Evan paid $10,000 of its costs in 2019 and the remaining $5,000 in 2020. Evan received $11,250.00 of its billing in 2019. Kensington paid the remaining $11,250 in 2020. Evan reports on the accrual basis of accounting. How much is Evan's 2019 and 2020 profit related to the Kensington consulting? 2019 2020 Net profits Check
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