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Legit Enterprises has asked for your accounting assistance and provides the following information: (1) Selected cash inflows and outflows reported by Legit for the twelve
Legit Enterprises has asked for your accounting assistance and provides the following information: (1) Selected cash inflows and outflows reported by Legit for the twelve months ended 12/31/20X1 and 12/31/20X2: Twelve Months ended: Cash activity: 12/31/X1 12/31/X2 Cash Collected from customers $170,000 $190,000 Cash paid for wages (90,000) (110,000) Cash paid for utilities (18,000) (27,000) Cash paid for insurance (22,000) (19,000) (2) Selected 12/31st account balances from Legit's accrual basis balance sheet: Accrual basis account balances: 12/31/XO Accounts Receivable $16,000 Prepaid Insurance Expense 8.800 Wages Payable 5,200 Utilities Payable 1,800 12/31/X1 12/31/X2 $28,000 $23,000 7,700 9,400 6,000 7,400 3,400 2,700 For purposes of this question ignore insurance and utilities. Consider the Sales Revenue and Wage Expense that Legit would report on its accrual basis income statement for the twelve months ended 12/31/X2 and select the answer below that shows the combined (i.e., net) value. $75,000 $73,600 $78,600 0 $80,000 None of the accounts listed would meet these specifications
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