Dex Co. is a nonpublic company that began operations on January 1, Year 3. Dex decided...
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Dex Co. is a nonpublic company that began operations on January 1, Year 3. Dex decided to prepare cash-basis financial statements. On the first day of operations, Dex paid $24,000 upfront for a two-year lease for office space. Dex also incurred $25,000 in salary expense for its employee in Year 3, including $21,000 paid and $4,000 accrued as of December 31, Year 3. During Year 3, Dex recorded $50,000 of total sales revenue, which includes $20,000 of sales recorded on credit. What is the company's Year 3 cash- basis income/loss from operations? Dex Co. is a nonpublic company that began operations on January 1, Year 3. Dex decided to prepare cash-basis financial statements. On the first day of operations, Dex paid $24,000 upfront for a two-year lease for office space. Dex also incurred $25,000 in salary expense for its employee in Year 3, including $21,000 paid and $4,000 accrued as of December 31, Year 3. During Year 3, Dex recorded $50,000 of total sales revenue, which includes $20,000 of sales recorded on credit. What is the company's Year 3 cash- basis income/loss from operations?
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Revenue Total sales revenue recorded during Year 3 50000 Sales recorded on credit 200... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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