Question $27$

Eagle Corp. earned revenues of $$160,000$ in cash and $$230,000$ on account during $2021.$ Of

the $$230,000$ on account, $$63,000$ was collected in cash in $2021$ and the rest in $2022.$ The

company incurred expenses of $$135,000$ in $2021$ and made payments of $$70,000$ towards

the expenses in $2021.$ What is net income in $2021$ under accrual accounting?

Answer: $