Homework Answers
| Item | Cash Basis Accounting | Accrual Based Accounting | |
| a | $ -1,000 | 0 | |
| b | 0 | 5000 | |
| c | 0 | -250 | |
| d | 3000 | 0 | |
| e | 0 | 0 | |
| f | -500 | -500 | |
| Under cash basis accounting, the transaction recognized only when there is cash flow except for depreciation. | |||
| Under the accrual basis, transactions are recorded as per the mercantile system of accounting. | |||
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Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. a. Purchased $1,000...
Brief Exercise 3-29 Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company....
Brief Exercise 3-29 Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. Purchased $1,000 of supplies. Sold $5,000 of advertising services, on account, to customers. Used $250 of supplies. Collected $3,000 from customers in payment of their accounts. Purchased equipment for $10,000 cash. Recorded $500 depreciation on the equipment for the current period. Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting. If...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
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1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description. Accru...
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Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $880 for six months of advertising. Johnny Flowers Law Firm recorded $880 in the Prepaid Advertising account. If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $1,170 for six months of advertising. Blue Nile Law Firm recorded $1,170 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
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Activity 1.c - Identifying Differences between Cash and Accrual Basis Read each scenario, decide whether the...
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Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
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Did I do this right? Accrual Basis Cash Basis Use the accrual basis of accounting to...
Did I do this right?
Accrual Basis Cash Basis Use the accrual basis of accounting to journalize the transactions below: Use the cash basis of accounting to journalize the transactions below: I cr 10.15 Provided $1,000 of legal counsel Dr I cr 10.15 Provided $1,000 of legal counsel; billed client AIR Kegal fees earned Dr 1000 1000 legal fees earned Dr 1000 I cr I cr 11.15 Received payment of Oct 15 services Cash AIR 12.31 Received payment of Oct...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $880 for six months of advertising. Johnny Flowers Law Firm recorded $880 in the Prepaid Advertising account. If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
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Did I do this right?
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