Following is a February transaction for a company. Calculate the amount of expense to recognize in February.

In February the company paid their employees $2,500; $2,000 for work performed in February and $500 for work performed in January.

Accrual basis expense: $____________

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 performed $98,500 of service and they billed their customers. Customers paid 90,000 this month and will pay $8,500 next month.

Accrual basis revenue: $___________

Cash basis revenue: $_____________