Accrual basis net income is based on accrual system of accounting where revenue and expense are considered to calculate net income when they are actually earned or incurred. | ||||||||||||
Calculate net income based on accrued basis | ||||||||||||
Working | ||||||||||||
Cash basis net income | $213,000 | 645000-432000 | ||||||||||
Add: | ||||||||||||
Increase in prepaid insurance | $2,000 | 8500-6500 | ||||||||||
Deduct: | ||||||||||||
Depreciation expense | -$32,000 | |||||||||||
Decrease in accounts receivable | -$6,000 | 76000-82000 | ||||||||||
Decrease in prepaid rent | -$2,300 | 8900-11200 | ||||||||||
Increase in deferred service revenue | -$2,400 | 11200-13600 | ||||||||||
Increase in accrued liabilities | -$4,900 | 14200-19100 | ||||||||||
Accrual basis net income | $167,400 | |||||||||||
Help Save & Ext Check m Haskins and Jones, Attorneys-at-Law, maintains its books on a cash...
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $590,000 for services rendered to its clients and paid out $421,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities (for various expenses) January 1, 2021 $ 71,000 5,400 10,100 10,100 December 31, 2021 $67,000 7,200 8,300 12,400 13, 100...
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $590,000 for services rendered to its clients and paid out $421,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities (for various expenses) January 1, 2021 $71,000 5,400 10,100 10,100 December 31, 2021 $ 67,000 7,200 8,300 12,400 13,100 16,900...
Haskins and Jones, Attorneys-at-Law, maintain its books on a cash basis. During 2018, the company collected $625,000 in fees from its clients and paid out $428,000 in expenses. You are able to determine the following information about accounts recelvable, prepaid expenses, deferred fee revenue, and accrued liabilities: January 1 esber 31, 2818 Accounts receivable Prepaid insurance Prepaid rent Deferred fee revenue Accrued liabilities 2018 $78,800 6,100 10,800 10,860 $67,000 7,700 9,300 12,800 (for various expenses) 13,800 18,300 In addition, 2018...
Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $210,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: $430,000 Cash collected for services to customers Cash paid for Salaries Supplies Rent Insurance Miscellaneous Het operating cash flow $191,000 36,000 20,000 10,000 31,000 288,000 $ $ 142,000 You are able to determine...
Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $150,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: Cash collected for: Services to customers $ 370,000 Cash paid for: Salaries $ 185,000 Supplies 30,000 Rent 14,000 Insurance 11,000 Miscellaneous 25,000 265,000 Net operating cash flow $ 105,000 You are...
Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $230,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: $ 450,000 Cash collected for: Services to customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow $ 193,000 38,000 22,000 12,000 33,000 298,000 $152,000 You are able to determine...
4 Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $240,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: 3 $460,000 points Cash collected for Services to customers Cash paid for Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow $199,000 39,000 23,000 6.000 34,000 eBook Hint 296.000 $164,000 Print References...
13 Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $110,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: 6.25 points $330,000 Cash collected for Services to customers Cash paid for Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow eBook $181,000 26,000 10,000 7,000 21,000 245,000 $ 85,000 Hint References...
Exercise 2-18 (Algo) Cash versus accrual accounting [LO2-9] Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $190,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: Cash collected for: Services to customers $ 410,000 Cash paid for: Salaries $ 189,000 Supplies 34,000 Rent 18,000 Insurance 8,000 Miscellaneous 29,000 278,000 Net...
Hep Save & ERILSUDMIL Exercise 2-18 (Algo) Cash versus accrual accounting (LO2-9) Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $160,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: $380,000 Cash collected for: Services to customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow 186,000 31,000...