Homework Answers
Solution 1:
Net Income for 2018 on accrual basis = Service Revenue - Salaries - Supplies
= $222300 - $93000- $47065 = $82,235
Solution 2:
Net Income for 2018 on Cash basis = Cash Revenue - Cash Expenses
= ($246410- 50000) - ($164850- 14800)
= $196410 - $150050
= $46,360
Solution 3:
Cash basis accounting links the recognition of revenues and expenses to cash . Therefore management can manipulate income by controlling when Cash is received or paid.
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complete please
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complete please
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