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
Homework Answers
| As per the accrual system of accounting, the revenue should be recorded | |||
| in the period for which services have been performed. | |||
| In the given case service performed for December for $45000 | |||
| which should be recorded as revenue. | |||
| Hence correct Option: A.45000 | |||
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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...
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
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 net cash flow from operating activities? A. 32,400 inflow B. 10,000 outflow C. 22,400 inflow D. 31,200 inflow
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