Question

iz #1 Help Save & Exit S The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2021 Selected Date as of December 31, 2021 Customers billed in 2021 for services provided Cash collections in 2021 for accounts billed in 2020 Cash collections in 2021 for accounts billed in 2021 Cash paid for supplies purchased in 2021 Supplies remaining at the end of 2021 Cash paid for salaries in 2021 Cash paid for annual rent on March 1, 2021 $420,000 21,000 230,000 16.000 2,100 13.000 26,000 Calculate the amount of revenues and expenses for 2021 under accrual basis accounting (Round your final answers to the nearest whole dollar.) Accrual basis revenues Accrual basis expenses < Prex 22 of 40 !!! Next >

Answer 1

Answer:

Accrual-basis revenues	$        420,000
Accrual-basis expenses	$          48,567
Detailed workings
Accrual basis revenue
On accrual basis only amount billed during the year of 2021 will be taken as revenue for the year 2021 and that is $420000 no adjustment for cash will be done in this amount.
Accrual basis expenses
Cash paid for supplies	$          16,000
Less: Supplies remaining at the end	$             2,100	$        13,900
Cash paid for salaries in 2021		$        13,000
Annual rent pain on March 1 2021	$          26,000
Less: Amount of rent for two months falling in 2022	$             4,333	$        21,667
=26000*2/12
Total expense on accrual basis		$        48,567

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