part b: Calculate the first
year’s net income under the cash basis of accounting.
Homework Answers
Calculate net income
| Accrual basis | Cash Basis | |
| Service revenue | 53000 | 44600 |
| Other Expenses | -32200 | -28700 |
| Insurance expense | -1000 | -2000 |
| Income tax expense | -3000 | 0 |
| Net income | 16800 | 13900 |
Add Answer to:
part b: Calculate the first
year’s net income under the cash basis of accounting.
Exercise 4-2...
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Exercise 4-2 (Part Level Submission) In its first year of operations, Athabasca Corp. earned $53,000 in service revenue. Of that amount, $8,400 was on account and the remainder, $44,600, was collected in cash from customers. The company incurred various expenses totalling $32,200, of which $28,700 was paid in cash. At year end, $3,500 was still owing on account. In addition, Athabasca prepaid $2,000 for insurance coverage that covered the last half of the first year and the first half of...
In its first year of operations, Athabasca Corp. earned $51,000 in service revenue. Of that amount,...
In its first year of operations, Athabasca Corp. earned $51,000
in service revenue. Of that amount, $8,400 was on account and the
remainder, $42,600, was collected in cash from customers.
The company incurred various expenses totalling $32,600, of which
$29,100 was paid in cash. At year end, $3,500 was still owing on
account. In addition, Athabasca prepaid $2,000 for insurance
coverage that covered the last half of the first year and the first
half of the second year. Athabasca expects...
First year net income under the accrual basis of acounting
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In its first year of operations, Oriole Company recognized $32,400 in service revenue, $7,200 of which...
In its first year of operations, Oriole Company recognized
$32,400 in service revenue, $7,200 of which was on account and
still outstanding at year-end. The remaining $25,200 was received
in cash from customers.
The company incurred operating expenses of $16,500. Of these
expenses, $12,670 were paid in cash; $3,830 was still owed on
account at year-end. In addition, Oriole prepaid $3,160 for
insurance coverage that would not be used until the second year of
operations.
(a) Calculate the first year’s...
Given the data below for a firm in its first year of operation, determine net income under the accrual basis of acc...
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In its first year of operations, Oriole Company recognized $30,000 in service revenue, $8,000 of which...
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Exercise 4-2 (Part Level Submission) In its first year of operations, Athabasca Corp. earned $53,000 in service revenue. Of that amount, $8,400 was on account and the remainder, $44,600, was collected in cash from customers. The company incurred various expenses totalling $32,200, of which $28,700 was paid in cash. At year end, $3,500 was still owing on account. In addition, Athabasca prepaid $2,000 for insurance coverage that covered the last half of the first year and the first half of...
In its first year of operations, Athabasca Corp. earned $51,000
in service revenue. Of that amount, $8,400 was on account and the
remainder, $42,600, was collected in cash from customers.
The company incurred various expenses totalling $32,600, of which
$29,100 was paid in cash. At year end, $3,500 was still owing on
account. In addition, Athabasca prepaid $2,000 for insurance
coverage that covered the last half of the first year and the first
half of the second year. Athabasca expects...
In its first year of operations, Oriole Company recognized
$32,400 in service revenue, $7,200 of which was on account and
still outstanding at year-end. The remaining $25,200 was received
in cash from customers.
The company incurred operating expenses of $16,500. Of these
expenses, $12,670 were paid in cash; $3,830 was still owed on
account at year-end. In addition, Oriole prepaid $3,160 for
insurance coverage that would not be used until the second year of
operations.
(a) Calculate the first year’s...
Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting Revenues earned for the period Cash collected on account Cash paid for expenses Accounts payable Prepaid rent for next period $45,000 12,000 26,000 3,000 7,000 18,000 15,000 19,000 7,000
Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting Revenues earned for the period Cash collected...
In its first year of operations, Sheridan Company recognized $30,000 in service revenue, $7,200 of which was on account and still outstanding at year-end. The remaining $22,800 was received in cash from customers. The company incurred operating expenses of $16,600. Of these expenses, $13,520 were paid in cash; $3,080 was still owed on account at year-end. In addition, Sheridan prepaid $2,650 for insurance coverage that would not be used until the second year of operations. (a) Calculate the first year's...
In its first year of operations, Oriole Company recognized $30,000 in service revenue, $8,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $20,400. Of these expenses, $13,990 were paid in cash; $6,410 was still owed on account at year- end. In addition, Oriole prepaid $2,710 for insurance coverage that would not be used until the second year of operations Calculate the first year's...
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