Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You receive $45,000 in year 1 for a job to be started and completed in year 2. You pay your supplier 33,000 in year 1
You receive $45,000 in year 1 for a job to be started and completed in year 2. You pay your supplier 33,000 in year 1 for materials and supplies to be delivered to you in year 2 for the upcoming job. In year 2, you complete the job. You purchase additional materials for 7,000 in year 2. Based on the information above, answer the following questions. Using Cash Basis of Accounting, what is the revenue of year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Cash Basis of Accounting, what is the expense of year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Accrual Basis of Accounting, what is the revenue of year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Accrual Basis of Accounting, what is the expense of year 2? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started