you swer LO 2 E3-19A. (Learning Objectives 1, 2: Using accrual accounting: applying accounting prin- ciples) During 20X8. Carson Network, Inc., which designs network servers, earned revenues of $850 million. Expenses totaled $560 million. Carson collected all but $30 million of the revenues and paid $610 million on its expenses. Carson's top managers are evaluating 20X8. and they ask you the following questions: a. Under accrual accounting, what amount of revenue should Carson Network report for 20X8? Is the revenue the $850 million earned or is it the amount of cash actually col- lected? How does the revenue principle help to answer these questions? b. Under accrual accounting, what amount of total expense should Carson Network report for 20X85560 million or $610 million? Which accounting principle helps answer this question? c. Which financial statement reports revenues and expenses? Which statement reports cash receipts and cash payments? Oris 1 2 Tournaline adirestine carries and c. On July 1. when 12.500 ft cared Rent Revenue to the d. Salary expenses 51.600 per day ployees each Friday. This yeu Deu e. The adjusted balance of the Si hand is $1.300. . Equipment was purchased the bed ment's useful lide is five years. The year and then determine the quan E3-23A. (Learning Objective: Making a of Fiona Publishing Company include the follow Receivable $1.500, Supplies. Son Salin Service Revenue, 55.000, Salary Expenses Fiona's accountant develops the follow a. Supplies on hand, $200 Salary owed to employees. 5800