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A company maintains its records using cash-basis accounting During the year the company received cash from customer

A company maintains its records using cash-basis accounting. During the year, the company received cash from customers, $34,000, and paid cash for taxes, $24,000. At the beginning of the year, customers owe the company $3,000. By the end of the year, customers owe $5,000. At the beginning of the year, the company owes taxes of $4,000. At the end of the year, the company owes taxes of $5,000. Determine cash-basis net income and accrual-basis net income for the year.

 

 

157. The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2015:

 

Selected Data as of December 31, 2015

 

Customers billed in 2015 for services provided

$400,000

Cash collections in 2015 for accounts billed in 2014

20,000

Cash collections in 2015 for accounts billed in 2015

300,000

Cash paid for supplies purchased in 2015

12,000

Supplies remaining at the end of 2015

2,000

Cash paid for salaries in 2015

10,000

Cash paid for annual rent on March 1, 2015

18,000

   

 

Calculate the amount of revenues and expenses for 2015 under cash-basis accounting.

 

 

158. The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2015:


 

Selected Data as of December 31, 2015

 

Customers billed in 2015 for services provided

$400,000

Cash collections in 2015 for accounts billed in 2014

20,000

Cash collections in 2015 for accounts billed in 2015

300,000

Cash paid for supplies purchased in 2015

12,000

Supplies remaining at the end of 2015

2,000

Cash paid for salaries in 2015

10,000

Cash paid for annual rent on March 1, 2015

18,000

   


Calculate the amount of revenues and expenses for 2015 under accrual-basis accounting.

Jan 27 2020 View more View Less

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