a) Cash basis.
Cash basis accounting is the method of accounting that record revenues only when received in cash and records expenses only when cash is paid.
Under the Cash basis, Pink Peonies Law firm will record $3,000 of Advertising Expense for the two months ended February 28.
b) Accrual basis
In Accrual basis of accounting revenues are recorded when they are earned and expenses are recorded when they are incurred
Under the accrual basis, Pink peonies Law firm will record $600 ($3,000 * 2 months / 10 months) of Advertising expense for the two months ending February 28.
The Pink Peonies Law Firm prepays for advertising in the local newspaper. On January 1, the...
The Pink Peonies Law Firm prepays for advertising in the local newspaper On January 1, the law firm paid 54 800 for six months of advertising How much advertising expense should Pink Peonies Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual bash? a. Under the cash basis, for the two months ending February 28the law firm should record advertising expense of
The Blue Hydrangea Law Firm prepays for advertising in the local newspaper On January 1, the law firm paid $12,000 for eight months of advertising How much advertising expense should Blue Hydrangea Law Fim record for the two months ending February 28 under the a. cash basis? b. accrual basis? a. Under the cash basis for the two months ending February 28, the law firm should record advertising expense of b. Under the accrual basis for the two months ending...
The Flower Fern Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,000 for five months of advertising How much advertising expense should Flower Fern Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis? a. Under the cash basis, for the two months ending February 28, the law fimm should record advertising expense of b. Under the accrual basis for the two months ending...
The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $6,300 for seven months of advertising. How much advertising expense should Purple Tulip Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis? a. Under the cash basis, for the two months ending February 28, the law firm should record advertising expense of b. Under the accrual basis for the two months ending...
The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,710 for six months of advertising. Orange Lily Law Firm recorded $2,710 in the Prepaid Advertising account. If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28? Enter this value as a positive number.
Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $4,200 for six months of advertising. Cash Basis Accrual Basis Cash Payment Expenses Recorded Total Expenses Recorded Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31, Seashore Home has collected $700 from cash-paying customers. Seashore...
metorship Google Chrome activity/5/1/1 Purple Tulip Law Firm prepays for advertising in the local newspaper, On January 1, the law firm paid $3,750 for six months of advertising. Cash Basis Accrual Cash Payment Expenses Recorded Total Expenses Recorded Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31, Seashore Home has collected $800 from...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answers to the questions. The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $120 for six months of advertising. Orange Lily Law Firm recorded $120 in the Prepaid Advertising account. Accrual basis If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answers to the questions. The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,140 for six months of advertising. Orange Lily Law Firm recorded $3,140 in the Prepaid Advertising account. If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
Read each scenario and fill in the Cash basis/Accrual basis table. Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $600 for six months of advertising. Cash Basis Accrual Basis Cash Payment Expenses Recorded Total Expenses Recorded Safe Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On...