Question
Blue Spruce Industries collected $106,000 from customers in 2019. Of the amount collected, $25,700 was for services performed in 2018. In addition, Blue Spruce performed
Blue Spruce Industries collected $106,000 from customers in 2019. Of the amount collected, $25,700 was for services performed in 2018. In addition, Blue Spruce performed services worth $41,600 in 2019, which will not be collected until 2020. Blue Spruce Industries also paid $71,700 for expenses in 2019. Of the amount paid, $30,800 was for expenses incurred on account in 2018. In addition, Blue Spruce incurred $43,800 of expenses in 2019, which will not be paid until 2020. (a) Compute 2019 cash-basis net income. Cash-basis net income (b) Compute 2019 accrual-basis net income
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