Transaction 1. Receive cash from customers in advance of services to be provided, $420. 2. Pay utilities bill for the previous period, $60. 3. Pay for insurance in advance of the period to be covered, $1,100. 4. Pay workers' salaries for the current period, $620. 5. Incur costs for employee salaries in the current period but do not pay, $820. 6. Receive cash from customers at the time of service, $2,100. 7. Purchase office supplies on account, $150. 8. Borrow cash from the bank, $2,200. 9. Receive cash from customers for services performed in the previous period, $570. 10. Pay for advertising to appear in the current period, $270. Accrual-Basis Cash-Basis Revenue Expense Revenue Expense

 

 

Accrual-Basis Cash-Basis Transaction 1. Receive cash from customers in advance of services to be provided, $420. 2. Pay utilities bill for the previous period, $60. 3. Pay for insurance in advance of the period to be covered, $1,100. 4. Pay workers' salaries for the current period, $620. 5. Incur costs for employee salaries in the current period but do not pay, $820. 6. Receive cash from customers at the time of service, $2,100. 7. Purchase office supplies on account, $150. 8. Borrow cash from the bank, $2,200. 9. Receive cash from customers for services performed in the previous period, $570. 10. Pay for advertising to appear in the current period, $270. Revenue Expense Revenue Expense