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Edgar's Consulting Services Company requires all of its customers to prepay for the services that they will receive. Edgar's records all customer prepayments as
Edgar's Consulting Services Company requires all of its customers to prepay for the services that they will receive. Edgar's records all customer prepayments as Unearned Service Revenues. On its accrual-basis income statements, Edgar's reported $1,178,700 of revenues in 2020. On its accrual-basis balance sheets, Edgar's reported Unearned Service Revenues of $251,600 at the end of 2019 and $369,800 at the end of 2020. What would revenues have been for 2020 using the cash-basis of accounting? a. $1,020,100 b. $1,430,300 c. $1,060,500 $1,296,900 d. e. None of the above.
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