BobCat company originated in December 2017. BobCat follows
accrual accounting principles. The following transactions happened
during the year:
December 2: Performed services on account for $45,000.
December 15: Collected $32,400 of the accounts receivable.
December 31: Paid the utility expense of $1,200.
Recorded $8,800 of accrued salaries at the end of the year.
What is net income?
A. 45,000
B. 35,000
C. 22,400
D. 32,400
Net Income - Option B $35,000
BobCat company originated in December 2017. BobCat follows accrual accounting principles. The following transactions happened during...
BobCat company originated in December 2017. BobCat follows accrual accounting principles. The following transactions happened during the year: December 2: Performed services on account for $45,000. December 15: Collected $32,400 of the accounts receivable. December 31: Paid the utility expense of $1,200. Recorded $8,800 of accrued salaries at the end of the year. What is total revenue that will be reported in the Income Statement? A. 45,000 B. 32,400 C. 35,000 D. 37,200
BobCat company originated in December 2017. BobCat follows accrual accounting principles. The following transactions happened during the year: December 2: Performed services on account for $45,000. December 15: Collected $32,400 of the accounts receivable. December 31: Paid the utility expense of $1,200. Recorded $8,800 of accrued salaries at the end of the year. What is net cash flow from operating activities? A. 32,400 inflow B. 10,000 outflow C. 22,400 inflow D. 31,200 inflow
Max Corp originated in December 2018. Max follows accrual accounting principles. The following transactions happened during the year: December 2: Performed services on account for $75,000. December 15: Collected $42,100 of the accounts receivable. December 31: Paid the utility expense of $3,200. Recorded $12,800 of accrued salaries at the end of the year. What is the net income that will be reported in the Income Statement? 71,800 O 32,900 O 26,100 59,000
E3-5 Devin Wolf Company has the following balances in selected accounts on December should adopt the achtily each statement as true or false. If false, indicate how to correct the statement. E3-2 On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the federal deficit (a) What is the...
CASH BASIS VERSUS ACCRUAL BASIS ACCOUNTING (11 Marks) The following transactions for January 2020 are as follows: 1 Purchased a two-year insurance policy for cash, $1,800 9 Performed a service on account, $800 16 Paid wages to employees, $950 18 Completed a job for a customer and collected $600 cash 23 Collected $500 of the amount owed from May 9 30 Accrued wages of $650 Using the Cash basis of accounting, calculate the Net Income (Loss) for January 2020. (5...
Prepare the balance sheet for Ralph Company at December 31, 2019 based on the following information. Received cash of $35,000 from the issuance of common stock Performed services on account for $75,000 Collected $48,000 of accounts receivable Recorded $12,000 of accrued salaries at the end of the year Paid rent expense of $18,000 Paid $4,000 of cash dividends to shareholders
The following accounting events apply to Mary’s Designs for Year 1: Asset Source Transactions Began operations by acquiring $21,000 of cash from the issue of common stock. Performed services and collected cash of $900. Collected $4,900 of cash in advance for services to be provided over the next 12 months. Provided $12,100 of services on account. Purchased supplies of $490 on account. Asset Exchange Transactions Purchased $4,900 of land for cash. Collected $7,900 of cash from accounts receivable. Purchased $540...
The following accounting events apply to Mary’s Designs for Year 1: Asset Source Transactions Began operations by acquiring $21,000 of cash from the issue of common stock. Performed services and collected cash of $900. Collected $4,900 of cash in advance for services to be provided over the next 12 months. Provided $12,100 of services on account. Purchased supplies of $490 on account. Asset Exchange Transactions Purchased $4,900 of land for cash. Collected $7,900 of cash from accounts receivable. Purchased $540...
Pitchfork Company follows the cash basis of accounting, but converts to the accrual basis at year end. Use the following information to determine what Pitchfork should report for COGS on an accrual basis for the year ended December 31, 2018. December 31, 2018 December 31, 2017 Inventory Accounts Payable for Inventory Accrued Expenses $290,000 50,000 5,000 $270,000 75,000 15,000 Pitchfork paid suppliers $490,000 during 2018 $435,000 O $445,000 O $495,000 O $545,000
Brief Exercise 4-8 The bookkeeper for Blossom Company asks you to prepare the following accrual adjusting entries at December 31(a) Interest on notes payable of $ 250 is accrued.(b) Services performed but unbilled totals $ 1,950.(c) Salaries of $ 900 earned by employees have not been recorded.