Chapter 3 Homework Submit your answers in Canvas before it is due Use the following to answer questions 1 - 4 A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records. Services provided to customers during the period Salaries expense for the period Accounts receivable (beginning balance) Accounts receivable (ending balance) Salaries payable (beginning balance) Salaries payable (ending balance) $855,000 453,000 42,000 21,000 12,000 15,000 Use T-accounts for ACCOUNTS RECEIVABLE and SALARIES PAYABLE to help answer questions #1 & 2. NOTE: ALL SERVICES PROVIDED ARE ON ACCOUNT AND SALARIES EXPENSE ARE RECORDED BEFORE THEY ARE PAID. 1. Determine the amount of cash collected from customers during the period: $ 2. Determine the amount for cash paid for salaries during the period: $ 3. Determine accrual basis net income for the period: $_ 4. Determine cash basis net income for the period: $ Use the following to answer questions 5-6 Following is a February transaction for a company. Calculate the amount of expense to recognize in February Received a phone bill for $500 for February, the company will pay it early next month. 5. Accrual basis expense: 6. Cash basis expense: $ Use the following to answer 7-8 Following is a February transaction for a company. Calculate the amount of revenue to recognize in February In February the company received $100,000 cash from customers for services; $90,000 was provided this month and $10,000 was provided last month. 7. Accrual basis revenue: $ 8. Cash basis revenue: $