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Hello! I need help with the following two-part accounting question, thank you in advance! Larkspur Industries collected $98,700 from customers in 2022. Of the amount
Hello! I need help with the following two-part accounting question, thank you in advance!
Larkspur Industries collected \$98,700 from customers in 2022. Of the amount collected, $23,500 was for services performed in 2021. In addition, Larkspur performed services worth $37,600 in 2022, which will not be collected until 2023. Larkspur Industries also paid $67,680 for expenses in 2022 . Of the amount paid, $28,200 was for expenses incurred on account in 2021. In addition, Larkspur incurred $39,480 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income (b) Compute 2022 accrual-basis net income. Accrual-basis net income $Step by Step Solution
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