Question

Score: 0 8 of 1 pt 53-4 (similar to) 106 (complete) HW Score: 60.57% 606 of 10 pts Assigned Media Question Het Suppose you houses for people wide they are away on con Most of your customers pay you im ately after you finish a job Abwask you to send them a bil it is nowne , and you have collected from cash paying customers. Your remaining customers owe you $1.00 How much service revenue would you have under the ( acas bases and accrual basis of accounting Which method of accounting provides more woman about your house sting business? Explain your answer How much service revenue would you have under the cash basis and accrual basis? Accrual basis

Answer 1

Cash basis: In this approach, when actually cash is received then, revenue is recognized. Therefore $640 received from customer treat as service revenue under cash basis. Accrual basis: In this approach, when services are performed revenue is recognized without caring of actual cash received or not. Therefore $1940 [(S640+$1300 (amount owed from customers)] will be recognized as service revenue. Yes. on March 03 advance amount recognized as service revenue because services has been completed. b) March 03, when service revenue recognized. No, it will report as Advance received from customer hence, short-term liability for company. Write Memo to you supervisor:

The cumulative cost of all amortization expense for assets appears in an account called Accumulated Amortization. Amortization is recorded to match the asset's expense with the periods the asset is uses, in accordance with the Matching principle Compute the amounts that have been left blank as follows: Total amount to account for = Beginning prepaid rent + Payments for Prepaid rent during the year - Ending Prepaid rent = $5400+$20400 - $22,000 = $3800 Rent Expense: $3,800