Question

Teip Desiyle Layout y Tell me what you want to do VÅ Å Aa AE.ET. * Aay. A a . . Аавьссоd Аавьссоd Аавьсс Аавьссо Аав Аавьсср 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph Styles Problem 3 Brink's International maintains its books using cash-basis accounting. However, the company plans to issue stock and must provide annual financial statements prepared using accrual-basis accounting. During 2021, the following cash flows were recorded: $480,000 Cash collected from customers Cash paid for: Salaries Rent Supplies Cash-basis profit $290,000 24,000 108,000 422,000 $58,000 You are able to determine the following information: Accounts receivable Supplies Salaries payable January 1, 2021 $15.000 21,400 9,600 December 31, 2021 $8,000 27,800 12,500 Prepare an accrual-basis income statement for December 31, 2021, by calculating accrual-basis revenues and expenses. Ravenue. Ref

Answer 1

Income Statement for the period Jam i , 202; to Dec 31 2021 Amount - particulars Revenue C 8000+ 4,80,000-1500) ( optool ( closing halanut cash received -op. bal) 4,73,000 Less 2, 92, 900 salaries (12,500 + 2,90,000 -9600] 24,000 Rent paid (No opening & closing balances] 1,14,400 Supplies 41,700 Profit l (loss) for the year